January 20 Market Close: GovCon Index Inches Gain, US Stocks Pare Advances After Trump Inaugural Speech

Executive Mosaic’s GovCon Index held higher Friday to post a weekly advance on boosts from from blue chip stock McKesson Corp. (NYSE: MCK) and aerospace company Rockwell Collins (NYSE: COL) after a first quarter earnings.

U.S. stocks sharply pared their gains after now President Donald Trump’s inaugural speech as uncertainty set in equity markets on uncertainty over his economic policies.

The GovCon Index and Wall Street at-large have risen to all-time highs since his Nov. 8 election on campaign promises of tax cuts and deregulation, along with plans to increase spending in domestic areas such as defense and infrastructure.

That rally has slowed down over the past two weeks as investors look for more clarity on Trump’s plans for the U.S. economy with trade policy a primary focal point of attention in light of his protectionist leaning during the campaign and his inaugural address.

GovCon Index gainers and decliners split even at 15-each in the Friday session and six of its 11 S&P 500 components closed green with pharmaceutical services provider McKesson the top performer in the GCI overall and among co-listed stocks.

Rockwell Collins closed second-best for GCI net gainers after the Cedar Rapids, Iowa-based avionics maker kicked off earnings season for GovCon Index companies with first quarter top-line numbers above analysts’ expectations and the company also reiterated expectations that its $6.4 billion acquisition of B/E Aerospace (Nasdaq: BEAV) will close in the spring.

Next week’s round of earnings reports from GovCon Index companies includes:

  • Tuesday: Lockheed Martin (NYSE: LMT)
  • Wednesday: Boeing (NYSE: BA) and Textron (NYSE: TXT)
  • Thursday: L3 Technologies (NYSE: LLL), Northrop Grumman (NYSE: NOC) and Raytheon (NYSE: RTN)
  • Friday: General Dynamics (NYSE: GD)

Navistar International (NYSE: NAV) weighed as the GovCon Index’s largest net laggard Friday and L3 posted the worst decline among companies listed in both the GovCon Index and S&P 500.

Telecommunications led eight major sectors higher to keep the S&P 500 in positive territory at the close, while industrials ended as the largest drag among the remaining three sectors.

Market Summary

Index Value Net Change % Change
GovCon Index 88.954 +0.263 +0.297%
S&P 500 2, 271.31 +7.62 +0.34%
Dow Jones Industrial Average 19, 827.25 +94.85 +0.48%
NASDAQ 5, 555.33 +15.25 +0.28%
Advancing GovCon Index Issues 17
Declining GovCon Index Issues 13
Unchanged GovCon Index Issues 0

Top GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▴ % Change
MCK McKesson Corp. * 150.28 +2.99 +2.03%
COL Rockwell Collins 91.40 +2.19 +2.45%
CACI CACI International 123.20 +0.95 +0.78%
HII Huntington Ingalls Industries 195.71 +0.89 +0.46%
MMS Maximus 57.08 +0.79 +1.40%

Top GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▴
COL Rockwell Collins 91.40 +2.19 +2.45%
MCK McKesson Corp. * 150.28 +2.99 +2.03%
MMS Maximus 57.08 +0.79 +1.40%
CUB Cubic Corp. 48.30 +0.45 +0.94%
CACI CACI International 123.20 +0.95 +0.78%

Lowest GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▾ % Change
NAV Navistar International 27.79 -0.84 -2.93%
OA Orbital ATK 88.15 -0.68 -0.77%
LLL L3 Technologies * 151.41 -0.50 -0.33%
SAIC SAIC 83.21 -0.44 -0.53%
NOC Northrop Grumman * 232.11 -0.28 -0.12%

Lowest GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▾
NAV Navistar International 27.79 -0.84 -2.93%
EGL Engility Holdings 31.67 -0.28 -0.88%
OA Orbital ATK 88.15 -0.68 -0.77%
VEC Vectrus 23.50 -0.14 -0.59%
SAIC SAIC 83.21 -0.44 -0.53%

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