Executive Mosaic’s GovCon Index lost steam to start the week, sliding 0.61% to $5,436.01. Wall Street turned red as reduced rate cut expectations pushed bond yields higher. The Nasdaq Composite (-1.18%) fell sharply, while the Dow Jones Industrial Average and S&P 500 lost nearly one percent.
Magnificent Seven stocks, except one, finished lower on Monday. Chipmaker NVIDIA (Nasdaq: NVDA) rose 2.2% amid investor optimism about artificial intelligence. Super Micro Computer (Nasdaq: SMCI) was the biggest gainer with +15.79%. The server and solutions provider said the strong shipments of graphics processing units, or GPUs, were due to strong AI demand.
Decliners overwhelmed gainers on the GovCon Index, 21 to 9. Fluor Corporation (NYSE: FLR) led advancers with +1.34%, while AI stock Palantir Technologies (NYSE: PLTR) sunk 2.8%, the most drop among underperformers.
Flour Corporation has risen 4.93% since Oct. 1 and is on a four-day winning streak. The global engineering and construction company is in the limelight this hurricane season. Some analysts expect increased demand for its products and services in anticipation of more hurricanes making landfall.
Boeing (NYSE: BA) rose for the second straight trading session on confirmation that negotiations for a new labor contract will continue on Tuesday. Federal mediators were present in Monday’s meeting. The U.S. Navy also awarded the plane maker a $95.8 million contract to provide testing and installation support to upgrade the EA-18G Growler jet.
AeroVironment (Nasdaq: AVAV) hosted the first Defense Robotics Developers Conference in Orlando, Florida. DEVCON 2024 is a premier event for the manufacturer of uncrewed aircraft systems, or UAS. Wahid Nawabi, chairman, president, and CEO of AeroVironment, said, “DEVCON represents the future of defense robotics.”
The West Texas Intermediate (WTI) crude oil price climbed 3% to $77 per barrel; a seven-week high due to ongoing Middle East tensions. Another headwind for stocks was the rise of the U.S. ten-year note to 4.033%, the highest level since Aug. 1. According to CME’s FedWatch Tool, the chances for a 25-basis points rate cut next month has risen from 34.7% last week to 84.6% today.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,436.01 | -33.33 | -0.61% |
| Dow Jones Industrial Average | 41,954.24 | -398.51 | -0.94% |
| NASDAQ | 17,923.90 | -213.95 | -1.18% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| FLR | 50.64 | 0.67 | 1.34% |
| VVX | 59.29 | 0.74 | 1.26% |
| BA | 155.91 | 0.91 | 0.59% |
| BAH | 161.26 | 0.46 | 0.29% |
| LDOS | 166.66 | 0.27 | 0.16% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BA | 155.91 | 0.91 | 0.59% |
| VVX | 59.29 | 0.74 | 1.26% |
| FLR | 50.64 | 0.67 | 1.34% |
| BAH | 161.26 | 0.46 | 0.29% |
| LMT | 605.54 | 0.41 | 0.07% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 38.89 | -1.12 | -2.80% |
| MRCY | 36.75 | -0.60 | -1.61% |
| ACN | 356.8 | -5.44 | -1.50% |
| J | 137.97 | -2.07 | -1.48% |
| GIB | 113.36 | -1.63 | -1.42% |
