(Reuters) - U.S. companies that depend on government contracts as a large part of their business were hit hard during the partial shutdown.
The shares of large publicly traded companies with a significant percentage of their revenues from the government dipped below their 20-day moving averages, underperforming the S&P during the market’s weakness in the shutdown.
The shares have rebounded, and could keep going since a deal to reopen the government has been reached.
“For now there is strong momentum behind anything that is benefiting from the reopening of the government,” said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.
Not all of these companies had to furlough workers or delay business, so the impact of the shutdown varied. Lockheed Martin Corp furloughed 3,000 employees, while Motorola Solutions Inc did not furlough any employees.
Here’s a look at the decline and rebound of companies with big government contracts since September 27, the Friday before the shutdown began and when the chances of averting the shutdown still seemed high, until October 16, when the Senate struck a bipartisan deal to reopen the government.
Reporting by Julia Edwards; Editing by Jeffrey Benkoe