Executive Mosaic’s GovCon Index traded higher Monday in mixed activity for U.S. stocks as Engility Holdings (NYSE: EGL) surged on a second quarter earnings beat with General Dynamics (NYSE: GD) and Cubic Corp. (NYSE: CUB) also as top performers.
The GovCon Index added 0.252 points to 82.500 with four of the GCI’s 11 S&P 500 stocks green at the close as markets reacted to a new three-month low for the U.S. crude oil price benchmark.
Engility hit a three-month high at the open after the Chantilly, Virginia-based government services contractor lifted its full-year earnings outlook and reported higher contract bookings for the second quarter with a higher book-to-bill ratio compared to the first quarter.
General Dynamics led net gainers in in the first trading day since a Saturday post on Barron’s speculated shares in the defense contractor may be undervalued and could rise if the Gulfstream business jet segment stabilizes after a series of quarters with soft sales.
San Diego-based defense and transportation contractor Cubic reached a one quarter high in the first half-hour of Monday trade and is scheduled to report financial results for its fiscal year 2016 third quarter Wednesday.
Tuesday’s batch of GovCon Index financial reports include Harris Corp. (NYSE: HRS), which will state fourth quarter and full-year figures for its FY 2016 before Tuesday’s open; and consulting services provider ICF International (Nasdaq: ICFI) with its second quarter earnings after markets close Tuesday.
Thursday’s batch of pre-open GCI earnings statements will come from Huntington Ingalls Industries (NYSE: HII) in the shipbuilder’s second quarter, plus health and human services contractor Maximus (NYSE: MMS) for its FY 2016 third quarter.
McKesson Corp. (NYSE: MCK) weighed as the GCI’s largest net decliner at $2.47, followed by Harris at 97 cents and Honeywell International (NYSE: HON) at 45 cents.
Four GCI companies hit 52-week highs in intraday trade Monday: Raytheon (NYSE: RTN), CAE (NYSE: CAE), ManTech International (Nasdaq: MANT) and Vectrus (NYSE: VEC).
Crude oil futures in New York settled down 3.7 percent to $40.06 and briefly traded below the $40-benchmark, which subsequently sent the S&P 500 energy sector down at least 3 percent after the U.S. stock bellwether touched an all-time intraday high.
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| GD | General Dynamics | 149.09 | 2.20 | 1.50% |
| LMT | Lockheed Martin | 254.84 | 2.11 | 0.83% |
| EGL | Engility Holdings | 31.14 | 2.10 | 7.23% |
| CUB | Cubic Corp. | 42.73 | 1.89 | 4.63% |
| CACI | CACI International | 96.38 | 1.05 | 1.10% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| I | Intelsat | 2.70 | 0.40 | 17.39% |
| EGL | Engility Holdings | 31.14 | 2.10 | 7.23% |
| CUB | Cubic Corp. | 42.73 | 1.89 | 4.63% |
| GD | General Dynamics | 149.09 | 2.20 | 1.50% |
| CACI | CACI International | 96.38 | 1.05 | 1.10% |
* Also listed in the S&P 500 composite index
Market Summary
| Advancing GovCon Index Issues | 17 |
| Declining GovCon Index Issues | 13 |
| Unchanged GovCon Index Issues | 0 |
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 82.500 | +0.252 | +0.306% |
| S&P 500 | 2, 170.84 | -2.76 | -0.13% |
| Dow Jones Industrial Average | 18, 404.51 | -27.73 | -0.15% |
| NASDAQ | 5, 184.20 | +22.07 | +0.43% |
