Executive Mosaic’s GovCon Index traded higher Tuesday on a lift from Boeing (NYSE: BA) and government services stocks as Lockheed Martin (NYSE: LMT) fell after the defense contractor reported material weaknesses related to internal controls for financial statements at its Sikorsky helicopter subsidiary.
All three major U.S. stock indices also advanced as the S&P 500 composite index hit an all-time closing record with corporate earnings reports and President Donald Trump’s latest executive action at the forefront of investor attention.
GovCon Index gainers outnumbered laggards by a 5-to-1 ratio and eight of its 11 S&P 500 companies advanced with co-listed Boeing the top net performer overall and fellow GCI-S&P stock Lockheed the largest drag.
Lockheed kicked off earnings season for large defense primes with 2017 top-line guidance below analysts’ expectations on higher pension expenses with forecasted revenue above Wall Street’s outlook.
CEO Marillyn Hewson confirmed during a subsequent conference call with investors a Thursday Reuters report that said the company and U.S. Defense Department are close to a $9 billion contract for the 10th batch of low-rate initial production F-35 fighter jets at 90 aircraft total.
The news agency said that deal could bring the price per plane down below $100 million for the first time since Lockheed first won the program in 2001.
Lockheed and DoD expect 66 F-35 deliveries this year compared to the 46 delivered in 2016.
Boeing reports fourth quarter and full-year results before markets open Wednesday.
Construction companies AECOM (NYSE: ACM) and KBR (NYSE: KBR) led GCI percentage gainers to ride strong investor sentiment toward infrastructure companies Tuesday after President Donald Trump signed an executive order to advance approvals of the Keystone XL and Dakota Access oil pipelines.
Material stocks led eight major S&P sectors higher and telecommunications the largest laggard among the remaining three.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 88.845 | +0.437 | +0.494% |
| S&P 500 | 2, 280.07 | +14.87 | +0.66% |
| Dow Jones Industrial Average | 19, 912.71 | +112.86 | +0.57% |
| NASDAQ | 5, 600.96 | +48.01 | +0.86% |
| Advancing GovCon Index Issues | 25 |
| Declining GovCon Index Issues | 5 |
| Unchanged GovCon Index Issues | 0 |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change ▴ | % Change |
|---|---|---|---|---|
| BA | Boeing * | 160.55 | +2.71 | +1.72% |
| CACI | CACI International | 123.50 | +2.20 | +1.81% |
| ACM | AECOM | 37.42 | +2.11 | +5.98% |
| CUB | Cubic Corp. | 49.50 | +1.60 | +3.34% |
| HRS | Harris Corp. * | 102.07 | +1.36 | +1.35% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change ▴ |
|---|---|---|---|---|
| ACM | AECOM | 37.42 | +2.11 | +5.98% |
| KBR | KBR | 17.11 | +0.60 | +3.63% |
| CUB | Cubic Corp. | 49.50 | +1.60 | +3.34% |
| NAV | Navistar International | 27.94 | +0.87 | +3.21% |
| VEC | Vectrus | 23.38 | +0.45 | +1.96% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change ▾ | % Change |
|---|---|---|---|---|
| LMT | Lockheed Martin * | 252.91 | -4.57 | -1.77% |
| MCK | McKesson Corp. * | 148.31 | -1.01 | -0.68% |
| MMS | Maximus | 56.45 | -0.15 | -0.27% |
| BAESY | BAE Systems | 30.07 | -0.10 | -0.33% |
| LLL | L3 Technologies * | 149.60 | -0.09 | -0.06% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change ▾ |
|---|---|---|---|---|
| LMT | Lockheed Martin * | 252.91 | -4.57 | -1.77% |
| MCK | McKesson Corp. * | 148.31 | -1.01 | -0.68% |
| BAESY | BAE Systems | 30.07 | -0.10 | -0.33% |
| MMS | Maximus | 56.45 | -0.15 | -0.27% |
| LLL | L3 Technologies * | 149.60 | -0.09 | -0.06% |
