SAIC not looking good...

Shares of SAIC Inc. are down 1.98 to 13.02 after the contractor announced disappointing second-quarter results and its full-year outlook disappointed Wall Street expectations. The company cited tightening government budgets.

William Loomis, an analyst for Stifel Nicolaus, cut his rating for SAIC to "Hold" from "Buy," saying he was surprised to see the slowdown in business so early in the government spending cycle.

"We are concerned that when budget pressures increase over the next couple of years, it could add additional pressure to the business, resulting in lackluster earnings per share growth over the next couple of years," Loomis wrote in a note to investors.