Executive Mosaic’s GovCon Index dropped 1.15% to $4,697.07, ending its five-day winning streak. Wall Street was shellshocked by stubborn inflation, causing the blue-chip Dow Jones Industrial Average (-1.35%) to shed 524.63 points. The S&P 500 (-1.37%) and Nasdaq Composite (-1.80%) plunged on widespread losses.
The Dow Jones had its worst day performance since March 2023, while all 11 primary sectors of the S&P 500 finished lower. More than 80% or 2,675 Nasdaq constituents declined. Mega-cap tech stocks Amazon.com (Nasdaq: AMZN) and Microsoft (Nasdaq: MSFT) dropped more than 2%.
On the GovCon Index, only three of 30 stocks advanced. Mercury Systems (Nasdaq: MRCY) and Curtiss-Wright (NYSE: CW) had very slim gains, but top performer Leidos Holdings (NYSE: LDOS) rose 5.89% after reporting better-than-expected earnings. Monday’s winners, V2X (NYSE: VVX) and Palantir Technologies (NYSE: PLTR), sank 5% and 4.15% to lead the decliners.
Fortune 500 company Leidos impressed investors with its fourth quarter and full year 2023 results. Revenue for the year increased 7% to $15.4 billion versus 2022, while net income in Q4 rose 27.7% year-over-year to $230 million. “With a strong finish to the year, Leidos delivered on all of its financial commitments,” said Tom Bell, Leidos CEO.
Market observers expected inflation to ease considerably but Bureau of Labor Statistics data showed otherwise. The consumer price index increased 0.3% in January, although inflation reading declined to 3.1%. With this latest development and still elevated inflation, CME Group’s initial rate cut forecast moved to May from March.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,697.07 | -1.81 | -1.15% |
| Dow Jones Industrial Average | 38,272.75 | -524.63 | -1.35% |
| S&P 500 | 4,953.17 | -68.67 | -1.37% |
| NASDAQ | 15,655.60 | -286.95 | -1.80% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LDOS | 121.28 | 6.72 | 5.87% |
| MRCY | 30.04 | 0.16 | 0.54% |
| CW | 228.91 | 0.27 | 0.12% |
| HII | 275.11 | -0.63 | -0.23% |
| LMT | 426.52 | -1.55 | -0.36% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LDOS | 121.28 | 6.72 | 5.87% |
| CW | 228.91 | 0.27 | 0.12% |
| MRCY | 30.04 | 0.16 | 0.54% |
| RTX | 90.59 | -0.55 | -0.60% |
| KTOS | 17.8 | -0.58 | -3.16% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| VVX | 37.24 | -1.96 | -5.00% |
| CG | 43.39 | -1.92 | -4.24% |
| PLTR | 24.01 | -1.04 | -4.15% |
| AVAV | 122.15 | -4.21 | -3.33% |
| MMS | 81.31 | -2.65 | -3.16% |
