Executive Mosaic’s GovCon Index slips 0.25% to $5,220.73 for its second straight daily loss. The U.S. Federal Reserve lowered interest rates, citing greater confidence in the fight against inflation. However, the Dow Jones Industrial Average (-0.25%), S&P 500 (-0.29%), and Nasdaq Composite (-0.31%) declined despite the 50-basis points cut.
Only 44% and 41% of NYSE stocks and Nasdaq components finished with gains following the anticipated rate cut announcement. The S&P 500 retreated from its record high as nine of the index’s 11 primary sectors finished in the red. General Motors (NYSE: GM) rose 2.4% on news that its electric vehicles have the green light to charge at Tesla (Nasdaq: TSLA) Supercharger stations.
On the GovCon Index, Kratos Defense & Security Solutions (Nasdaq: KTOS) and V2X (NYSE: VVX) led eight gainers and 21 decliners, respectively. L3Harris Technologies (NYSE: LHX) was flat mid-week.
Kratos has received a $79.8 million firm fixed-price delivery order from the U.S. Air Force. The tech company said the order is for the Lot 20 procurement of 60 aircraft, mission kits, certain flight consumables, and technical data for the BQM-167A Air Force Subscale Aerial Target under a five-year base contract.
The U.S. Army awarded Palantir USG, a subsidiary of Palantir Technologies (NYSE: PLTR), a $99.8 million firm-fixed-price contract for user licenses for the Maven Smart System AI tool, ancillary software support and hardware. General Dynamics (NYSE: GD) Land Systems won a $51 million modification with the Army to a contract to exercise option hours for Abrams systems technical support.
The U.S. Navy awarded Boeing (NYSE: BA) a delivery order with a ceiling price of $29.5 million under a previously awarded basic ordering agreement relating to black III windshield panel spares for the F/A-18 E/F aircraft. Also, on Wednesday, the plane maker initiated temporary layoffs for the duration of the labor strike as part of its cost-cutting measures.
The Federal Open Market Committee voted 11-1 for a half-point cut, with Governor Michelle Bowman dissenting with a quarter-point move. While the oversized rate reduction was welcome news, equity markets lost steam. The rate range is down to 4.75% – 5% but Fed Chairman Jerome Powell said there was no hurry for the central bank to ease its policy further.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,220.73 | -13.08 | -0.25% |
| Dow Jones Industrial Average | 41,503.10 | -103.08 | -0.25% |
| NASDAQ | 17,573.30 | -54.76 | -0.31% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KTOS | 23.42 | 0.99 | 4.41% |
| HII | 269.02 | 3.61 | 1.36% |
| CG | 42.32 | 0.33 | 0.79% |
| SAIC | 134.61 | 0.56 | 0.42% |
| J | 145.54 | 0.60 | 0.41% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| HII | 269.02 | 3.61 | 1.36% |
| KTOS | 23.42 | 0.99 | 4.41% |
| NOC | 521.63 | 0.88 | 0.17% |
| J | 145.54 | 0.60 | 0.41% |
| SAIC | 134.61 | 0.56 | 0.42% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 51.41 | -0.83 | -1.59% |
| GIB | 112.9 | -1.75 | -1.53% |
| MRCY | 36.31 | -0.54 | -1.47% |
| TXT | 87.49 | -1.20 | -1.35% |
| TTEK | 45.75 | -0.61 | -1.32% |
