Executive Mosaic’s GovCon Index rebounded Tuesday on gains by defense technology makers as U.S. stocks also rose with jumps by technology and retail shares in conjunction with investor optimism on new consumer confidence data.
GovCon Index gainers outnumbered laggers at a 4-to-1 ratio and all 11 of its S&P 500 companies advanced as co-listed stocks represented seven of the GCI’s top 10 net advancers in Tuesday trade.
S&P 500-listed stocks commanded the GovCon Index’s top five for net gainers with L-3 Communications (NYSE: LLL) the GCI’s largest contributor followed by Harris Corp. (NYSE: HRS), General Dynamics (NYSE: GD), McKesson Corp. (NYSE: MCK) and Northrop Grumman (NYSE: NOC).
General Dynamics set a new 52-week high during intraday trade and hit a new all-time closing record for the second session in four since the Senate voted to proceed with a $1.15 billion sale of Abrams tanks to Saudi Arabia.
“Big Three” credit rating agency Fitch Ratings said Monday it expects U.S. defense spending levels to remain “solid” in the 2017 federal fiscal year that starts October 1 and funding to subsequently increase on the global security environment and readiness issues in the military.
Fitch assumed budget caps will be overturned in its outlook on the U.S. defense sector and added its forecast could be affected by the length of any continuing resolution that would extend government funding at FY 2016 levels.
Booz Allen Hamilton (NYSE: BAH) was the other GCI company to trade at a 52-week high Tuesday.
Services-oriented contractors lagged but military shipbuilder Huntington Ingalls Industries (NYSE: HII) ended as the lowest net performer.
New economic data showed U.S. consumer confidence rose to its highest level recorded since 2007 and financial shares also staged a rebound as U.S. markets appeared to welcome poll numbers showing Hillary Clinton as having outperformed Donald Trump in Monday night’s U.S. presidential debate six weeks ahead of the election, Bloomberg reported.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 81.551 | +0.393 | +0.484% |
| S&P 500 | 2, 159.93 | +13.83 | +0.64% |
| Dow Jones Industrial Average | 18, 228.30 | +133.47 | +0.74% |
| NASDAQ | 5, 305.71 | +48.22 | +0.92% |
| Advancing GovCon Index Issues | 23 |
| Declining GovCon Index Issues | 7 |
| Unchanged GovCon Index Issues | 0 |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| LLL | L-3 Communications * | 152.49 | +1.84 | +1.22% |
| HRS | Harris Corp. * | 91.58 | +1.45 | +1.61% |
| GD | General Dynamics * | 155.28 | +1.41 | +0.92% |
| MCK | McKesson Corp. * | 166.36 | +1.18 | +0.71% |
| NOC | Northrop Grumman * | 218.05 | +1.05 | +0.48% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| HRS | Harris Corp. * | 91.58 | +1.45 | +1.61% |
| CUB | Cubic Corp. | 46.80 | +0.59 | +1.28% |
| BAH | Booz Allen Hamilton | 31.57 | +0.39 | +1.25% |
| SAIC | SAIC | 70.23 | +0.87 | +1.25% |
| LLL | L-3 Communications * | 152.49 | +1.84 | +1.22% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 153.85 | -0.67 | -0.43% |
| NAV | Navistar International | 21.37 | -0.61 | -2.78% |
| VEC | Vectrus | 27.94 | -0.25 | -0.89% |
| ICFI | ICF | 44.00 | -0.20 | -0.45% |
| KBR | KBR | 14.38 | -0.12 | -0.83% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| NAV | Navistar International | 21.37 | -0.61 | -2.78% |
| VEC | Vectrus | 27.94 | -0.25 | -0.89% |
| KBR | KBR | 14.38 | -0.12 | -0.83% |
| ICFI | ICF | 44.00 | -0.20 | -0.45% |
| HII | Huntington Ingalls Industries | 153.85 | -0.67 | -0.43% |
