Executive Mosaic’s GovCon Index posted a third straight daily loss, sinking further to $5,485.41 (-0.56%). Wall Street’s major indexes fell into red territory due to various headwinds. A selloff hit the Nasdaq Composite (-1.60%), while the Dow Jones Industrial Average (-0.96%) and S&P 500 (-0.92%) extended their losing streaks to three days.
Only 28% of Nasdaq components advanced mid-week as most large-cap tech stocks slumped. McDonald’s (NYSE: MCD) led Dow Jones losers with -5.12% on news of a possible E. coli outbreak due to contaminated ingredients in its quarter pounder. Verizon Communications (NYSE: VZ) rose 3.28% and recovered from Tuesday’s steep drop.
The GovCon Index had 23 decliners, led by KBR (NYSE: KBR) and Parsons (NYSE: PSN). Seven GCI stocks advanced, but only RTX (NYSE: RTX) gained more than 1%. Boeing (NYSE: BA) dipped 1.76% after presenting its third-quarter results, which showed lower top and bottom lines.
Raytheon, an RTX business, secured two contract awards from the U.S. Army worth $676 million. The defense solutions provider will continue manufacturing the tube-launched, optically-tracked, wireless-guided TOW weapon system.
KBR declined 4.47% to $67.25 despite reporting higher revenue in Q3 2024 and a return to profitability. In the three months ending Sept. 27, 2024, total revenues increased 10% year-over-year to $1.95 billion, while net income reached $102 million compared to the $18 million net loss in Q3 2023.
Boeing’s revenues in Q3 2024 declined 1.46% year-over-year to $17.8 billion, while net loss swelled 277% to $6.2 billion from a year ago. The plane maker cites the ongoing worker’s strike for the massive loss. However, the strike will be extended after the union members rejected Boeing’s new contract offer on Wednesday.
Some analysts believe the markets turned fragile because of three headwinds. Investors are concerned about big tech earnings, rising bond yields, and political uncertainty as U.S. presidential elections draws near. Americans will vote on Tuesday, Nov. 5, and the Federal Reserve will announce its interest rate decision two days later.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,485.41 | -30.54 | -0.56% |
| Dow Jones Industrial Average | 42,514.95 | -409.94 | -0.95% |
| NASDAQ | 18,276.65 | -296.48 | -1.60% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| RTX | 127.21 | 1.68 | 1.34% |
| BAH | 163.26 | 0.83 | 0.51% |
| LDOS | 168.31 | 0.76 | 0.45% |
| LHX | 245.82 | 0.89 | 0.36% |
| ICFI | 169.72 | 0.23 | 0.14% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| RTX | 127.21 | 1.68 | 1.34% |
| LHX | 245.82 | 0.89 | 0.36% |
| BAH | 163.26 | 0.83 | 0.51% |
| LDOS | 168.31 | 0.76 | 0.45% |
| CACI | 524.1 | 0.69 | 0.13% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KBR | 67.25 | -3.15 | -4.47% |
| PSN | 104.38 | -3.04 | -2.83% |
| BAESY | 68.31 | -1.31 | -1.88% |
| BA | 157.06 | -2.82 | -1.76% |
| FLR | 52.83 | -0.84 | -1.57% |
