Executive Mosaic’s GovCon Index widened its loss from Tuesday, sinking 1.31% to $5,580.46. Major indexes started strong but the rally faltered. The Dow Jones Industrial Average (+0.11%) and S&P 500 (+0.02%) settled slightly higher while the Nasdaq Composite (-0.26%) closed in the red.
The Bureau of Labor Statistics reported the latest inflation data, which aligned with expectations. The consumer price index rose 0.2% in October to 2.6% and core CPI was 3.3%, a 0.3% increase from September. Meanwhile, on the bond market, the 10-year T-note yield was 2.3 basis points higher or 4.451%.
GovCon Index Underperformers
More than two-thirds of GovCon Index stocks finished in negative territory. Fluor Corporation (NYSE: FLR) and Accenture (NYSE: ACN) led eight gainers. V2X (NYSE: VVX) plunged 10.37%, the most significant drop among 22 underperformers.
Fluor recovered from a sharp loss last week after reporting a revenue miss and lower profits in Q3 2024. Nonetheless, the engineering and construction firm remains optimistic about its future market potential. David Constable, CEO of Fluor, said, “It does not change our focus on pursuing demand-driven growth opportunities in the markets we serve and on returning cash to shareholders.”
V2X hit an intra-day low of $59.94 before finishing at $60.67. The provider of critical mission solutions and support to defense clients announced a secondary stock offering. An existing stockholder will offer 2.5 million shares of common stock, but the company will not receive proceeds from the transaction.
Booz Allen Hamilton (NYSE: BAH), the second-worst performer, announced that its venture capital arm, Booz Allen Ventures, invested in satellite servicing company Starfish Space. The strategic investment aims to strengthen the resilience and sustainability of space infrastructure for government and commercial missions.
Boeing (NYSE: BA) declined after the plane maker sent out layoff notices as part of its plan to streamline operations. Around 10% of the 17,000-plus workforce will be affected. Also, Avia Solutions Group from Europe ordered 40 737 MAX 8 aircraft on Wednesday. However, because of the current backlog, the first delivery is 2030.
Gradual rate cuts
US Fed officials who spoke mid-week expressed support for gradual rate cuts. St. Louis Fed president Alberto Musalem expects inflation to converge toward 2% over the medium term. Kansas City Fed chief Jeffrey Schmid believes the time is “now” to reduce U.S. interest rates but is uncertain how far the central bank needs to go.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,580.46 | -73.13 | -1.31% |
| NASDAQ | 19,230.72 | -50.68 | -0.26% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| FLR | 50.33 | 1.83 | 3.77% |
| ACN | 370.22 | 9.61 | 2.66% |
| KTOS | 27.73 | 0.47 | 1.72% |
| J | 149.25 | 2.14 | 1.45% |
| PLTR | 60.7 | 0.85 | 1.42% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ACN | 370.22 | 9.61 | 2.66% |
| J | 149.25 | 2.14 | 1.45% |
| GD | 314.03 | 1.98 | 0.63% |
| FLR | 50.33 | 1.83 | 3.77% |
| PLTR | 60.7 | 0.85 | 1.42% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 60.67 | -7.02 | -10.37% |
| BAH | 172 | -9.45 | -5.21% |
| CACI | 542.36 | -24.84 | -4.38% |
| BA | 139.97 | -5.20 | -3.58% |
| BAESY | 68.26 | -2.46 | -3.48% |
