Executive Mosaic’s GovCon Index gained 0.11% to $4,660.09 and kept pace with the major indexes. The Dow Jones Industrial Average (+0.30%) registered its sixth record close this month, while the S&P 500 is on the cusp of matching its 2022 record. More than 200 tech stocks hit new 52-week highs to lift the Nasdaq Composite (+0.16%).
Bond yields continue to fall, with the ten-year Treasury note dropping to 3.79%. Mortgage interest rates on 30-year and 15-year fixed terms also declined mid-week to 7% and 6.41%, respectively, compared to 8% in October. Meanwhile, home prices are accelerating despite higher mortgage rates.
“With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023,” said Selma Hepp, chief economist at CoreLogic.
On the GovCon Index side, the Carlyle Group (Nasdaq: CG), Jacobs (NYSE: J), and Tetra Tech (Nasdaq: TTEK) gained one percent or more to lead 17 advancers. AeroVironment (Nasdaq: AVAV) was flat, while Mercury Systems (Nasdaq: MRCY) and Palantir Technologies (NYSE: PLTR) were the top decliners.
Two trading days are left in 2023, and investors hope the Santa Rally takes the whole route or until the first two trading days of January 2024. A series of rate cuts might follow if the Feds soon achieve its 2% inflation rate target.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Total | 4,660.09 | 5.31 | 0.11% |
| Dow Jones Industrial Average | 37,656.52 | 111.19 | 0.30% |
| S&P 500 | 4,781.58 | 6.83 | 0.14% |
| NASDAQ | 15,099.18 | 24.61 | 0.16% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| CG | 41.69 | 0.81 | 1.98% |
| J | 130.16 | 1.98 | 1.54% |
| TTEK | 168.39 | 1.67 | 1.00% |
| SAIC | 125.24 | 0.60 | 0.48% |
| GD | 257.43 | 1.22 | 0.48% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| J | 130.16 | 1.98 | 1.54% |
| TTEK | 168.39 | 1.67 | 1.00% |
| GD | 257.43 | 1.22 | 0.48% |
| HON | 209.02 | 0.98 | 0.47% |
| CG | 41.69 | 0.81 | 1.98% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| MRCY | 36.27 | -0.51 | -1.39% |
| PLTR | 17.47 | -0.21 | -1.19% |
| FLR | 39.61 | -0.21 | -0.53% |
| MMS | 84.3 | -0.42 | -0.50% |
| GIB | 107.39 | -0.42 | -0.39% |
