Hello, Guest!

October 2 Market Report: Executive Mosaic’s GovCon Index Ends Lower to Start Fourth Quarter 2023, Last Minute Deal Averts Shutdown

October 2 Market Report: Executive Mosaic’s GovCon Index Ends Lower to Start Fourth Quarter 2023, Last Minute Deal Averts Shutdown

Executive Mosaic’s GovCon Index had a weak start to October, slipping 0.28% to $134.87. On Wall Street, the Nasdaq Composite and S&P 500 Index rose 0.67% and 0.01%, while the Dow Jones Industrial Average lost 0.22% to reduce its year-to-date gain to less than 1% or 0.86%.

The House and Senate beat the deadline and sent a funding bill to the White House to avert a shutdown. U.S. President Joe Biden signed the bill into law Saturday night. The approved bill means the government has funding for 45 days or until November 17. Even with the passing of a continuing resolution by Congress to sidestep a crisis, the higher-for-longer interest rate scenario is a top-of-mind concern of investors. 

The central bank’s message pushed Treasury yields higher. On Monday, the ten-year yield hit 4.701% at one point, the highest since October 15, 2007. Also, the rate-sensitive utility sector of the S&P 500 Index declined 4.72%. Borrowing is more expensive now for all companies, regardless of sector, due to higher interest rates.

On the GovCon Index, 22 of the 30 constituents advanced despite the slide. Booz Allen Hamilton (NYSE: BAH) rose 3.94% to $133.57 to lead the gainers. The U.S. defense contractor announced an investment in HiddenLayer, a company specializing in digital defenses of artificial intelligence (AI) and sensitive networks.   

Erstwhile top index performers Globalstar Inc. (NYSE: GSAT) and Fluor Corporation (NYSE: FLR) registered the most significant percentage declines, 6.87% and 3.05%, respectively. 

Market Summary

Index Price Net Change % Change
GovCon Index Daily Average 134.87 -0.37 -0.28%

Top 5 GovCon Index Daily Percentage Performers

Symbol Price Net Change % Change
BAH 113.57 4.30 3.94%
SAIC 106.92 1.38 1.31%
CSCO 54.39 0.63 1.17%
LDOS 93.2 1.04 1.13%
GD 222.93 1.96 0.89%

Top 5 GovCon Index Daily Net Performers

Symbol Price Net Change % Change
BAH 113.57 4.30 3.94%
NOC 442.22 2.03 0.46%
GD 222.93 1.96 0.89%
SAIC 106.92 1.38 1.31%
ACN 308.26 1.15 0.37%

Top 5 GovCon Index Daily Percentage Decliners

Symbol Price Net Change % Change
GSAT 1.22 -0.09 -6.87%
FLR 35.58 -1.12 -3.05%
CAE 22.86 -0.49 -2.10%
BA 187.83 -3.85 -2.01%
J 134.36 -2.14 -1.57%

 

 

Leave a Reply

Your email address will not be published.