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April 24 Market Report: Executive Mosaic’s GovCon Index Loses Steam, Major Indexes End Flat

Home Financial Reports April 24 Market Report: Executive Mosaic’s GovCon Index Loses Steam, Major Indexes End Flat
April 24 Market Report: Executive Mosaic’s GovCon Index Loses Steam, Major Indexes Ends Flat

Executive Mosaic’s GovCon Index lost steam mid-week, sliding 0.56% lower to $4,835.43. The earnings season went into high gear but was inadequate to buoy the markets. All three major indexes hardly moved, although the S&P 500 (+0.02%) and Nasdaq Composite (+0.10%) ended positive on very modest gains. 

Tech stocks were the market movers Wednesday, with electric carmaker Tesla (Nasdaq: TSLA) and toy & game company Hasbro (Nasdaq: HAS) popping 12.06% and 11.85%, respectively. Chipmaker NVIDIA (Nasdaq: NVDA) declined 3.33% after announcing it agreed to acquire Run:ai, a Tel Aviv, Israel-based software startup.

The GovCon Index reversed its movement from Tuesday, as 21 stocks finished in the red and nine advanced. The decline of General Dynamics (NYSE: GD), Boeing (NYSE: BA) and three more high-priced stocks pulled down the price-weighted index. Mercury Systems (Nasdaq: MRCY) and BAE Systems were the top performers.

General Dynamics fell nearly 4% despite reporting 8.6% and 9.5% year-over-year increases in revenue and net earnings in the first quarter of 2024. The aerospace and defense company failed to deliver G700 jets due to higher costs and supply chain challenges. However, management said deliveries should resume after obtaining a certification for the business jets from the Federal Aviation Administration before March 31.

Boeing reported a $355 million net loss in Q1 2024 and an 8% revenue drop to $16.6 billion compared to Q1 2023. Notably, the plane maker burned $3.8 billion in cash. Its retiring CEO, David Calhoun, said in a memo to employees that Boeing is in a tough moment in the near term. The priority is to address safety and quality issues to regain public confidence.

Also, on Wednesday, President Joe Biden signed a foreign aid bill that provides military assistance to Ukraine, Israel, and the Indo-Pacific. According to the American Enterprise Institute, the recipients of the $61 billion aid to Ukraine are top defense contractors and weapons-makers. The nine companies, all GovCon Index constituents, include General Dynamics and Boeing.  

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Average 4,835.43 -27.06 -0.56%
Dow Jones Industrial Average 38,460.92 -42.77 -0.11%
S&P 500 5,071.63 1.08 0.02%
NASDAQ 15,712.75 16.11 0.10%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
MRCY 28.48 1.04 3.79%
BAESY 68.99 0.90 1.32%
HII 275.84 1.37 0.50%
SAIC 128.47 0.39 0.30%
KBR 64.38 0.18 0.28%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
HII 275.84 1.37 0.50%
MRCY 28.48 1.04 3.79%
BAESY 68.99 0.90 1.32%
SAIC 128.47 0.39 0.30%
TTEK 189.29 0.35 0.19%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
GD 281.11 -11.61 -3.97%
BA 164.33 -4.85 -2.87%
TXT 94.01 -1.27 -1.33%
BAH 144.39 -1.57 -1.08%
ACN 313.54 -3.29 -1.04%