Executive Mosaic’s GovCon Index stayed positive, ending at $5,070.54 (+0.02%) following a tiny gain. However, the major U.S. indexes fell in the red zone as rate cuts hope dim. The Dow Jones Industrial Average (-0.51%) had its worst trading day in May, while the S&P 500 (-0.27%) and Nasdaq Composite (-0.18%) lost steam.
The minutes of the Federal Open Market Committee meeting held from April 30 to May 1 and released Wednesday unsettled the market. Besides discussions on stubborn inflation, Fed officials were open to further rate hikes if necessary. The next FOMC meeting is June 12-13, 2024.
Moderna (Nasdaq: MRNA) jumped 13.67% on optimism that it has the vaccine to cure bird flu. Published reports say a child tested positive for avian influenza in Australia. The biotech giant also expanded collaboration with Open AI and use artificial intelligence to advance research. Retailer titan Target (NYSE: TGT) sank 8.03% on weak quarterly earnings.
Only 12 of 30 GovCon Index stocks posted gains mid-week, although the marginal gain helped the index to stay afloat. Accenture (NYSE: ACN) and Tetra Tech (Nasdaq: TTEK) were the top performers. V2X (NYSE: VVX) led 18 decliners, with five stocks sliding more than one percent.
Accenture has agreed to acquire Partners in Performance, a Sydney, Australia-based management consultancy firm. According to Accenture, the acquisition will boost its capability while strengthening its position in industries such as chemicals, metals and mining, oil and gas and utilities, among others.
On May 22, 2024, the U.S. Navy awarded Lockheed Martin Space, a business division of Lockheed Martin (NYSE: LMT), a not-to-exceed $99 million cost-plus-incentive-fee and cost-plus-fixed-fee unpriced letter contract modification to a previously awarded contract to provide systems engineering, test planning, and long lead material in support of missile production.
Also, on Wednesday, General Dynamics (NYSE: GD) Mission Systems secured a $33.4 million cost-plus-fixed-fee and cost modification to a previously awarded contract with the Navy. It will exercise options to provide BYG-1 Tactical Control System engineering support.
The minutes of the most recent FOMC meeting suggest that the path to rate cuts could be longer. Moreover, a rate hike is now a consideration. Economic data, including jobless claims and consumer sentiment, will come out later this week.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 5,070.54 | 1.05 | 0.02% |
| Dow Jones Industrial Average | 39,671.04 | -201.95 | -0.51% |
| S&P 500 | 5,307.01 | -14.40 | -0.27% |
| NASDAQ | 16,801.54 | -31.08 | -0.18% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| ACN | 307.11 | 3.47 | 1.14% |
| TTEK | 220.4 | 1.85 | 0.85% |
| RTX | 106.31 | 0.88 | 0.83% |
| BA | 186.28 | 1.50 | 0.81% |
| MRCY | 32.06 | 0.24 | 0.75% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| ACN | 307.11 | 3.47 | 1.14% |
| NOC | 474.69 | 2.79 | 0.59% |
| TTEK | 220.4 | 1.85 | 0.85% |
| BA | 186.28 | 1.50 | 0.81% |
| LMT | 469.71 | 1.40 | 0.30% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| VVX | 45.94 | -1.10 | -2.34% |
| CW | 280.75 | -4.46 | -1.56% |
| MMS | 85.79 | -1.36 | -1.56% |
| CG | 43.71 | -0.68 | -1.53% |
| KTOS | 21.41 | -0.29 | -1.34% |
