Executive Mosaic’s GovCon Index rose 0.92% to $5,268.96, snapping its two-day losing streak. Global markets and investors digested the U.S. oversized rate cut, resulting in sharp rallies. The Dow Jones Industrial Average (+1.26%) and S&P 500 (+1.70%) closed at new all-time highs, while the Nasdaq Composite surged 2.51%.
About 72% of Nasdaq components or 2,729 issues advanced Thursday compared to over 40% mid-week. All Magnificent Seven stocks finished with gains, bannered by Tesla’s (Nasdaq: TSLA) +7.36%. Darden Restaurants (NYSE: DRI) topped the S&P 500 gainers with +8.25% following the announcement of a food delivery partnership with Uber Technologies (NYSE: UBER).
The GovCon Index recovered from back-to-back daily losses as 24 of 30 stocks settled higher. V2X (NYSE: VVX) and Carlyle Group (Nasdaq: CG) popped more than 5%. Kratos Defense & Security Solutions (Nasdaq: KTOS) led six losers with -2.56%.
Harvey Schwartz, CEO of Carlyle, told CNBC he sees a vibrant economy ahead and expects three more rate cuts by the Federal Reserve before the end of 2024. The central bank will then pause to assess the impact. However, Jason Thomas, head of Global Research & Investment Strategy at the private equity firm, said 4% to 4.5% base rates could be the “new normal.”
Boeing (NYSE: BA) is now down 40.69% year-to-date after a 0.34% drop. The plane maker’s CEO, Kelly Ortberg, said the temporary leave of U.S.-based employees aims to preserve cash while the factory workers’ strike and labor contract negotiations are ongoing.
The U.S. Navy awarded BAE Systems Information and Electronic Systems Integration an $87.6 million firm-fixed-price, cost-plus-fixed-fee contract to produce and deliver 1592 radio frequency countermeasures and repair multi-function test stations in support of the Navy and Foreign Military Sales customers.
Raytheon Missiles Defense secured a $46.8 million contract modification with the Army for engineering and technical services to support the Stinger Weapon System. The RTX (NYSE: RTX) business was also awarded a $12.2 million modification to a contract for Stinger services.
An added tailwind to Thursday’s upside is the latest US unemployment benefits that showed a resilient labor market. The jobless claims in the week ending Sept. 14 fell by 12,000 to 219,000. According to the Labor Department, it is the lowest reading in four months.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,268.96 | 48.33 | 0.92% |
| NASDAQ | 18,013.98 | 440.68 | 2.51% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 54.46 | 3.05 | 5.93% |
| CG | 44.51 | 2.19 | 5.17% |
| FLR | 47.45 | 1.54 | 3.35% |
| AVAV | 179.69 | 5.25 | 3.01% |
| J | 149.46 | 3.92 | 2.69% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CACI | 489.61 | 6.22 | 1.29% |
| AVAV | 179.69 | 5.25 | 3.01% |
| CW | 317.98 | 4.38 | 1.40% |
| ICFI | 168.35 | 4.35 | 2.65% |
| J | 149.46 | 3.92 | 2.69% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KTOS | 22.81 | -0.60 | -2.56% |
| MRCY | 35.58 | -0.73 | -2.01% |
| HII | 268.03 | -0.99 | -0.37% |
| BA | 154.59 | -0.52 | -0.34% |
| ACN | 335.24 | -0.94 | -0.28% |
