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October 12 Market Report: Executive Mosaic’s GovCon Index and Wall Street Lose Steam as Bond Yields Pop, Inflation Still Elevated

October 12 Market Report: Executive Mosaic’s GovCon Index and Wall Street Lose Steam as Bond Yields Pop, Inflation Still Elevated

Executive Mosaic’s GovCon Index slid 0.87% to $141.47 to snap its winning streak. All three major indexes lost steam as stocks succumbed to rising bond yields. After moving from green to red and vice-versa throughout the trading session, the Dow Jones Industrial Average (-0.51%), Nasdaq Composite (-0.63%) and the S&P 500 Index (-0.62%) fell in unison eventually.

The ten-year U.S. Treasury climbed to 4.710% from 4.596% a day before after the consumer price index report showed actual inflation in September was higher than forecast. According to the Bureau of Labor Statistics, CPI rose 3.7% year-over-year to match the previous month’s pace. But despite core inflation sliding to 4.1%, overall inflation remains elevated.

Regarding the S&P 500 Index, rate-sensitive sectors such as materials, utilities, and real estate registered the most significant percentage drops. Homebuilding stocks, in particular, were under extreme pressure due to surging bond yields.

On the GovCon Index, red lights flashed bright as 80% of the constituents finished lower. The top gainers for the day were Northrop Grumman (NYSE: NOC) and Maximus (NYSE: MMS). Accenture (NYSE: ACN), Boeing (NYSE: BA) and CAE (NYSE: CAE) led the decliners.   

Some market analysts note the surge of the defense sector in reaction to the Middle East conflict. Northrop Grumman has gained 13.63% in the last five trading days, while the shares of Lockheed Martin (NYSE: LMT) rose 9.26% during the same period. 

Market Summary

Index Price Net Change % Change
GovCon Index Daily Average 141.47 -1.23 -0.87%
Dow Jones Industrial Average 33,631.14 -173.73 -0.51%
S&P 500 4,349.61 -27.34 -0.62%
NASDAQ 13,574.22 -85.46 -0.63%

Top 5 GovCon Index Daily Percentage Performers

Symbol Price Net Change % Change
NOC 477.31 3.94 0.83%
MMS 77.19 0.29 0.38%
CSCO 53.85 0.19 0.35%
BAH 127.01 0.36 0.28%
PSN 57.83 0.11 0.19%

Top 5 GovCon Index Daily Net Performers

Symbol Price Net Change % Change
NOC 477.31 3.94 0.83%
BAH 127.01 0.36 0.28%
MMS 77.19 0.29 0.38%
CSCO 53.85 0.19 0.35%
PSN 57.83 0.11 0.19%

Top 5 GovCon Index Daily Percentage Decliners

Symbol Price Net Change % Change
ACN 304.36 -8.18 -2.62%
BA 191.3 -4.77 -2.43%
CAE 22.8 -0.54 -2.31%
CG 29.77 -0.64 -2.10%
GIB 99.46 -2.05 -2.02%

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