Executive Mosaic’s GovCon Index closed lower at $5,562.17 (-0.21%) after registering its first daily loss since Oct. 31. On Wall Street, the broader S&P 500 (-0.74%) and tech-heavy Nasdaq Composite (-1.51%) extended their post-election rallies, while the Dow Jones Industrial Average was flat. An added tailwind for US stocks was the Fed’s rate cut.
GovCon Index Winning streak ends
The GovCon Index ended its four-day winning streak as decliners outnumbered advancers. BAE Systems and AeroVironment (Nasdaq: AVAV) rose more than 3% to lead 11 gainers. Inversely, top losers Carlyle Group (Nasdaq: CG) and V2X (NYSE: VVX) fell more than 3%. Only Lockheed Martin (NYSE: NOC) was unchanged.
Boeing (NYSE: BA) was the third-best performer with +2.6%. With the union strike over, the plane maker will resume 737 MAX aircraft production soon. However, the Federal Aviation Administration said the oversight will be stricter to diminish safety risks. Also, on Thursday, the Israeli Defense Ministry announced a $5.2 billion deal to acquire 25 next-generation F-15 fighter jets from Boeing.
Carlyle presented its Q2 2024 results that showed higher top and bottom-line numbers. In the three months ending Sept. 30, 2024, total revenues and net income increased 72.8% and 82% year-over-year to $2.63 billion and $615.7 million compared to Q3 2023. Harvey Schwartz, CEO of Carlyle, said the clear outcome of the presidential election could prompt corporate heads and investors to make big decisions and do more deals.
HII (NYSE: HII) announced that its Mission Technologies division secured a contract under the Department of Defense Information Analysis Center’s multiple-award contract vehicle. The $197 million contract supports the U.S. Army Combat Capabilities Development Command’s Ground Vehicle Systems Center.
Second rate cut in 2024
The US Federal Reserve, as expected, cut interest rates by 25 basis points, lowering the benchmark rate range to between 4.5% to 4.75%. In a press conference Thursday, Fed Chairman Jerome Powell said the election won’t impact the central bank’s decisions in the near term. The policymakers will rely on economic data.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,562.17 | -11.61 | -0.21% |
| NASDAQ | 19,269.46 | 285.99 | 1.51% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAESY | 71.96 | 2.56 | 3.69% |
| AVAV | 223.69 | 7.37 | 3.41% |
| BA | 150.98 | 3.82 | 2.60% |
| TTEK | 47.46 | 0.65 | 1.39% |
| ACN | 360.71 | 4.58 | 1.29% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 223.69 | 7.37 | 3.41% |
| ACN | 360.71 | 4.58 | 1.29% |
| BA | 150.98 | 3.82 | 2.60% |
| BAESY | 71.96 | 2.56 | 3.69% |
| HON | 217.5 | 1.10 | 0.51% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CG | 52.35 | -1.88 | -3.47% |
| VVX | 66.59 | -2.23 | -3.24% |
| HII | 197.82 | -5.39 | -2.65% |
| BAH | 175.8 | -4.16 | -2.31% |
| J | 144.85 | -2.77 | -1.88% |
