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June 20 Market Report: Executive Mosaic’s GovCon Index Posts 3rd Consecutive Daily Gain, Tech Rally on Wall Street Stalls

Home Uncategorized June 20 Market Report: Executive Mosaic’s GovCon Index Posts 3rd Consecutive Daily Gain, Tech Rally on Wall Street Stalls
June 20 Market Report: Executive Mosaic’s GovCon Index Posts 3rd Consecutive Daily Gain, Tech Rally on Wall Street Stalls

Executive Mosaic’s GovCon Index is on a roll this week, rising 0.64% to $4,981.28 for its third consecutive daily gain. The blue-chip Dow Jones Industrial Average (+0.77%) rose nearly 300 points, while the Nasdaq Composite (-0.79%) and benchmark index S&P 500 (-0.25%) declined from their record highs.

Chip stocks retreated Thursday, led by the 6.03% and 3.54% dips of Micron Technology (Nasdaq: MU) and AI king NVIDIA (Nasdaq: NVDA). Gilead Sciences (Nasdaq: GILD) popped 8.46% for its best day performance since 2022. The Phase 3 trial results of the biotech firm’s twice-yearly antiviral injection showed zero infections and 100% efficacy to help prevent HIV in women.   

Defense stocks Northrop Grumman (NYSE: NOC), Lockheed Martin (NYSE: LMT) and Leidos Holdings (NYSE: LDOS) outperformed on the GovCon Index, although Accenture (NYSE: ACN) was the top performer among 22 gainers with +7.29%. Worst performers AeroVironment (Nasdaq: AVAV) and Mercury Systems (Nasdaq: MRCY) plunged 7.17% and 4.28%, respectively.

Professional services company Accenture reported a 1% revenue drop in Q3 fiscal 2024 to $16.5 billion compared to Q3 fiscal 2023. However, new bookings rose 22% year-over-year to $21.1 billion, including over $900 million in generative AI bookings. The Carlyle Group (Nasdaq: CG) advanced 3.64% after it agreed to purchase Energean’s assets in Croatia, Egypt, and Italy for up to $945 million. The private equity firm also announced the creation of a new Mediterranean-focused oil and gas company post transaction.

On June 20, 2024, the Missile Defense Agency awarded Lockheed Martin Rotary & Missions Systems an extension to the indefinite-delivery/indefinite-quantity contract to develop and sustain the MDA’s Objective Simulation Framework modeling and simulation system. The total contract value is $282.7 million. 

Meanwhile, the U.S. Air Force awarded Northrop Grumman Mission Systems a contract for Combat Air Forces Distributed Mission Operations services with a ceiling value of $189 million. The contract provides distributed training to capable Air Force trainers worldwide and establishes a virtual environment for distributed training events.

Also, on Thursday, the Labor Department released the latest jobless claims report that showed applications for unemployment benefits declined to 238,000 from a ten-month high of 243,000 the week before. While the labor market continues to show resiliency, Rubeela Farooqi, chief U.S. economist at High-Frequency Economics, expects a material weakening in worker demand ahead.

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Average 4,981.28 31.85 0.64%
Dow Jones Industrial Average 39,134.76 299.90 0.77%
S&P 500 5,473.17 -13.86 -0.25%
NASDAQ 17,721.59 -140.64 -0.79%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
ACN 306.16 20.81 7.29%
CG 41 1.44 3.64%
NOC 434.48 8.65 2.03%
LDOS 146.01 2.14 1.49%
LMT 466.34 6.34 1.38%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
ACN 306.16 20.81 7.29%
NOC 434.48 8.65 2.03%
LMT 466.34 6.34 1.38%
LDOS 146.01 2.14 1.49%
LHX 224.1 1.65 0.74%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
AVAV 203.59 -15.72 -7.17%
MRCY 26.61 -1.19 -4.28%
FLR 44.71 -0.64 -1.41%
PLTR 25.56 -0.26 -1.01%
CW 276.2 -2.40 -0.86%