Executive Mosaic’s GovCon Index slumped for the second consecutive session, dropping 0.69% to $4,743.93. Wall Street flashed red due to inflation and geopolitical risks. The blue-chip Dow Jones Industrial Average (-0.65%) marked its sixth-losing day, while the S&P 500 and Nasdaq Composite lost more than one percent.
As U.S. stocks lost ground, the ten-year Treasury yield spiked to 4.661%, its highest level since Nov. 6, 2023. Besides 76% of its constituents declining, the weakness of mega-cap tech stocks led by NVIDIA (Nasdaq: NVDA) and Meta Platforms (Nasdaq: META) pulled down the Nasdaq Composite.
Tesla (Nasdaq: TSLA) tanked 5.59% following the announcement it would layoff 10% of its global workforce. Meanwhile, the earnings season is ongoing. Goldman Sachs (NYSE: GS) rose almost 3% after reporting a $4.1 billion net income in Q1 2024, representing a 28% year-over-year increase.
On the GovCon Index, 25 stocks underperformed. V2X (NYSE: VVX) and BAE Systems led the five advancers. Palantir Technologies (NYSE: PLTR) and Kratos Defense & Security Solutions declined the most at the start of the week. An Action on Armed Violence, or AOAV, report released on Apr. 15 said that BAE Systems benefits from global conflicts and threats of war. Notably, the top 40 nations by military spending are its clientele.
Also, on Monday, the Missile Defense Agency selected Lockheed Martin (NYSE: LMT) to deliver the nation’s new homeland missile defense capability, the Next Generation Interceptor. The contract under the interceptor program is worth $17 billion.
The consumer spending report in March showed that people are spending freely, notwithstanding high prices and high borrowing costs. Retail sales increased for the second straight month. Market analysts expect more price fluctuations in the days or weeks ahead due to rate cut uncertainty and the military conflict in the Middle East.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,747.93 | -32.62 | -0.69% |
| Dow Jones Industrial Average | 37,735.11 | -248.13 | -0.65% |
| S&P 500 | 5,061.82 | -61.59 | -1.20% |
| NASDAQ | 15,885.02 | -290.07 | -1.79% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| VVX | 45.41 | 0.83 | 1.86% |
| BAESY | 67.13 | 0.87 | 1.31% |
| LMT | 453.08 | 2.68 | 0.59% |
| LHX | 203.22 | 0.60 | 0.30% |
| MMS | 80.22 | 0.22 | 0.28% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LMT | 453.08 | 2.68 | 0.59% |
| BAESY | 67.13 | 0.87 | 1.31% |
| VVX | 45.41 | 0.83 | 1.86% |
| LHX | 203.22 | 0.60 | 0.30% |
| MMS | 80.22 | 0.22 | 0.28% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| PLTR | 21.9 | -0.77 | -3.40% |
| KTOS | 17.74 | -0.47 | -2.58% |
| ICFI | 140.22 | -3.43 | -2.39% |
| SAIC | 121.16 | -2.42 | -1.96% |
| PSN | 78.91 | -1.50 | -1.87% |
