Executive Mosaic’s GovCon Index rose 1.14% to $144.92 after fresh data from the Bureau of Labor Statistics showed lower inflation reading. Wall Street welcomed the news, as evidenced by the surge of the Big Three indexes. It was one of the best days in 2023 for the benchmark S&P 500 Index, jumping 1.9% to post a two-month high. The Dow Jones gained 1.43%, while the Nasdaq Composite advanced 2.37%.
Besides exiting correction territory, the tech-heavy Nasdaq is on course to end its best year since 2001. Its year-to-date return is nearly 35%, followed by the +17.09% of the S&P 500 and +5.07% for the Dow Jones. Tradeweb said the ten-year Treasury yield slipped to 4.44% on Tuesday.
With inflation slowing to 3.2% in October from 3.7% in September, economists believe the Federal Reserve will pause its rate hike campaign again in December. However, Michael Pugliese, a senior economist at Wells Fargo (NYSE: WFC), said the central bank can’t say mission accomplished yet.
An overwhelming majority of the GovCon Index stocks flashed green. Globalstar (NYSE: GSAT), the top performer, popped 7.75% to lead 26 gainers. Four other constituents climbed by at least 4%, with the Carlyle Group (NYSE: CG) and Fluor Corporation (NYSE: FLR) gaining 6% and 5.15%, respectively. CAE (NYSE: CAE) dipped 3.88% despite the 31% year-over-year increase in net income in Q2 fiscal 2024.
“I fear more needs to happen to curb demand and inflation,” said Thomas Barkin. The Federal Reserve President at Richmond notes the progress in the fight against inflation. However, he is not convinced inflation is on a “smooth path” towards the Fed’s 2% target.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 144.92 | 1.66 | 1.14% |
| Dow Jones Industrial Average | 34,827.70 | 489.83 | 1.43% |
| S&P 500 | 4,495.70 | 84.15 | 1.91% |
| NASDAQ | 14,094.38 | 326.64 | 2.37% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GSAT | 1.39 | 0.10 | 7.75% |
| CG | 31.81 | 1.80 | 6.00% |
| FLR | 37.74 | 1.85 | 5.15% |
| TTEK | 160.98 | 6.84 | 4.44% |
| MMS | 78.73 | 3.07 | 4.06% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| TTEK | 160.98 | 6.84 | 4.44% |
| ACN | 320.49 | 4.86 | 1.54% |
| LHX | 187.61 | 3.76 | 2.05% |
| HON | 190.24 | 3.73 | 2.00% |
| J | 137.05 | 3.17 | 2.37% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| CAE | 21.07 | -0.85 | -3.88% |
| RTX | 80.69 | -1.34 | -1.63% |
| BAESY | 54.37 | -0.88 | -1.59% |
| LMT | 444.22 | -0.81 | -0.18% |
| GIB | 100.6 | 0.29 | 0.29% |
