Executive Mosaic’s GovCon Index held positive Friday to end the week flat despite a majority of its 30 stocks in negative territory as S&P 500-listed General Dynamics (NYSE: GD) surged to an all-time record high during the session after the defense contractor issued a bullish three-year sales outlook.
U.S. stocks traded slightly lower after initial gross domestic product data and corporate earnings numbers came in below market expectations to slow down a week-long rally that saw equities hit record highs on optimism over President Donald Trump’s recent economic policy actions.
GovCon Index decliners outnumbered gainers by a 2-to-1 ratio Friday as six of its 11 S&P 500 components advanced with General Dynamics the GCI’s top overall net performer and military shipbuilder Huntington Ingalls Industries (NYSE: HII) the largest laggard.
General Dynamics told investors it expects revenue to increase 5.6 percent a year through 2020 and expanded its backlog to just under $60 billion.
Fellow large primes Raytheon (NYSE: RTN) and Northrop Grumman (NYSE: NOC) rebounded from tough sessions Thursday after both contractors issued tepid earnings forecasts for 2017, while L3 Technologies (NYSE: LLL) posted a second straight gain on increased profit and sales outlooks.
Harris Corp. (NYSE: HRS) climbed after the military radio manufacturer announced an agreement to sell its government information technology services business to Veritas Capital for $690 million to continue a portfolio reshaping initiative.
Lockheed Martin (NYSE: LMT) traded as low as 2 percent but pared its loss in late afternoon trade after Defense Secretary James Mattis ordered a review of the F-35 fighter jet program, which President Donald Trump has targeted for criticism over high costs.
Mattis separately ordered a review of the Air Force One Presidential Aircraft Recapitalization Program that Boeing (NYSE: BA) is a prime contractor for but shares in the airplane maker moved from a 0.7-percent decline to 0.8 percent down after the review directives became public.
On a weekly basis, 17 of the GovCon Index’s 30 stocks registered gains with four advancers also listed in the S&P 500.
The U.S. economy expanded at a 1.9-percent annual rate in the fourth quarter to fall below the 2.2 percent economists expected and the 3.5-percent figure recorded in the third quarter, Reuters reported.
Investors also gauged fourth quarter earnings from Google parent Alphabet that missed analysts’ expectations, while Microsoft and Intel topped Wall Street’s profit expectations.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 88.929 | +0.229 | +0.257% |
| S&P 500 | 2, 296.68 | -1.69 | -0.07% |
| Dow Jones Industrial Average | 20, 100.91 | -32.40 | -0.16% |
| NASDAQ | 5, 655.18 | -1.16 | -0.02% |
| Advancing GovCon Index Issues | 11 |
| Declining GovCon Index Issues | 19 |
| Unchanged GovCon Index Issues | 0 |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change ▴ | % Change |
|---|---|---|---|---|
| GD | General Dynamics Corporation * | 185.14 | +7.84 | +4.42% |
| RTN | Raytheon * | 145.88 | +2.98 | +2.09% |
| NOC | Northrop Grumman * | 229.83 | +2.87 | +1.26% |
| LLL | L3 Technologies * | 158.41 | +2.76 | +1.77% |
| HRS | Harris Corp. * | 102.53 | +1.30 | +1.28% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change ▴ |
|---|---|---|---|---|
| GD | General Dynamics * | 185.14 | +7.84 | +4.42% |
| RTN | Raytheon * | 145.88 | +2.98 | +2.09% |
| LLL | L3 Technologies * | 158.41 | +2.76 | +1.77% |
| HRS | Harris Corp. * | 102.53 | +1.30 | +1.28% |
| NOC | Northrop Grumman * | 229.83 | +2.87 | +1.26% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change ▾ | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 191.53 | -2.77 | -1.43% |
| MCK | McKesson Corp. * | 136.74 | -1.81 | -1.31% |
| LMT | Lockheed Martin * | 253.50 | -1.47 | -0.58% |
| BA | Boeing * | 167.70 | -1.42 | -0.84% |
| TXT | Textron * | 47.77 | -0.74 | -1.53% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change ▾ |
|---|---|---|---|---|
| ACM | AECOM | 37.87 | -0.72 | -1.87% |
| TXT | Textron Inc * | 47.77 | -0.74 | -1.53% |
| HII | Huntington Ingalls Industries | 191.53 | -2.77 | -1.43% |
| MCK | McKesson Corp. * | 136.74 | -1.81 | -1.31% |
| VEC | Vectrus | 22.96 | -0.28 | -1.20% |
