Executive Mosaic’s GovCon Index rose 0.41% to $4,654.78 in what could be the start of the Santa Rally. Wall Street’s Big Three indexes ended higher to start the last but holiday-shortened trading week in 2023. The Dow Jones Industrial Average and S&P 500 increased by 0.4%, while the Nasdaq Composite gained 0.5%.
Trading was relatively light compared to the pre-Christmas sessions, although the ratio of gainers versus losers on the NYSE was three to one. Energy was the dominant sector, although RayzeBio (Nasdaq: RYZB) from healthcare was the hottest ticker, soaring 100.85%.
On the GovCon Index, gainers also outnumbered decliners. The top performers among the 26 advancers were Fluor Corporation (NYSE: FLR) and Palantir Technologies (NYSE: PLTR). ICF (Nasdaq: ICFI), Parsons Corporation (NYSE: PSN), and two other stocks finished in the red.
Fluor and Palantir have bright business growth prospects heading into 2024. The former should benefit from the Biden administration’s new $1.2 trillion infrastructure bill. Palantir’s year-to-gain is over 175%, and the stock could soar higher. The demand for its artificial intelligence platform is growing not only from government contracts but also in the commercial markets.
With inflation steadily decreasing, traders expect a robust Santa Rally this week. Moreover, they believe the path to rate cuts in 2024 has opened. Many of them forecast the policy rate by year-end 2024 to be 1.5% lower than the current range of 5.25% to 5.50%. Based on the Feds’ published projections, there could be several cuts next year, but less than people expect.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Total | 4,654.78 | 19.11 | 0.41% |
| Dow Jones Industrial Average | 37,545.33 | 159.36 | 0.43% |
| S&P 500 | 4,774.75 | 20.12 | 0.42% |
| NASDAQ | 15,074.57 | 81.60 | 0.54% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| FLR | 39.82 | 0.76 | 1.95% |
| PLTR | 17.68 | 0.27 | 1.55% |
| VVX | 46.66 | 0.69 | 1.50% |
| KTOS | 20.55 | 0.26 | 1.28% |
| HON | 208.04 | 2.40 | 1.17% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| HON | 208.04 | 2.40 | 1.17% |
| BA | 262.79 | 2.35 | 0.90% |
| GD | 256.21 | 2.11 | 0.83% |
| LMT | 450.18 | 1.96 | 0.44% |
| HII | 257.83 | 1.74 | 0.68% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| ICFI | 132.95 | -0.88 | -0.66% |
| PSN | 62.89 | -0.29 | -0.46% |
| ACN | 353.43 | -1.02 | -0.29% |
| CACI | 320.84 | -0.10 | -0.03% |
| BAESY | 56.71 | 0.04 | 0.07% |
