May 31 Market Close: GCI Declines, Ends 4th Straight Month in Positive as New Tanker Delay Drags Boeing Shares

The GovCon Index posted a decline of 0.398 points to 78.106 Tuesday on losses by Boeing (NYSE: BA) and other large defense prime contractors but ended at a gain for May to record its fourth straight month of positive movement.

The Index rose 2.523 percent for May and has climbed 7.763 percent for 2016 compared to the S&P 500’s respective year-to-date gain of 2.6 percent as U.S. investors prepare for a potential interest rate hike in mid-June by the Federal Reserve.

Boeing fell 2.38 percent — or $3.07 — on the Air Force’s Friday announcement of a new delay in the KC-46 tanker program due to technical problems in the airplane’s refueling system and components.

The Air Force has pushed back its low-rate initial production decision to August from the previous June date and plans to immediately award a contract for the first two tanker production lots.

Other defense primes Lockheed Martin (NYSE: LMT) subsequently declined 1.61 percent with rocket and space systems manufacturer Orbital ATK (NYSE: OA) down 1.59 percent.

Northrop Grumman (NYSE: NOC) fell $1.75, General Dynamics (NYSE: GD) tumbled $1.26 and shipbuilder Huntington Ingalls Industries (NYSE: HII) declined $1.26.

Top GovCon Index Net Gainers

Symbol	Company	$ Current Price	Net Change –´	% Change
MCK	McKesson Corp.*	183.14	+1.92	+1.06%
CACI	CACI International	100.77	+1.91	+1.93%
MMS	Maximus	57.65	+0.63	+1.10%
VEC	Vectrus	25.41	+0.46	+1.84%
GIB	CGI Group	46.78	+0.45	+0.97%

Top GovCon Index Percentage Gainers

Symbol	Company	$ Current Price	Net Change	% Change –´
NAV	Navistar International	11.25	+0.36	+3.31%
CACI	CACI International	100.77	+1.91	+1.93%
VEC	Vectrus	25.41	+0.46	+1.84%
MMS	Maximus	57.65	+0.63	+1.10%
MCK	McKesson Corp.	183.14	+1.92	+1.06%