Executive Mosaic’s GovCon Index settled slightly above the flat line at $4,830.86 (-0.05%) for its second straight daily gain. Wall Street’s major stock indexes sank as trading resumed after the Day of Mourning. The Dow Jones Industrial Average and Nasdaq Composite lost 1.63%, while the S&P 500 (-1.54%) dropped sharply.
The blowout December jobs report triggered the broad market selloff. On Friday, the Bureau of Labor Statistics reported that the US economy added 256,000 jobs last month compared to 212,000 in November. Property insurers and power utility stocks were among the top decliners due to the raging wildfires in Los Angeles.
Strong Headwinds
The GovCon Index stayed positive amid strong headwinds and 17 decliners. However, despite two daily gains, the index lost 0.74% overall for the week. CACI (NYSE: CACI) and Tetra Tech (Nasdaq: TTEK) led 13 gainers, while Mercury Systems (Nasdaq: MRCY) topped the underperformers. AI stock Palantir Technologies (Nasdaq: PLTR) extended its losing streak to four days.
Also, on Friday, the US Army awarded Northrop Grumman (NYSE: NOC) Systems a $17 million modification to a contract for precision guidance kits. The US Navy awarded Raytheon, an RTX (NYSE: RTX) business, an $8.2 million cost-plus-fixed-fee modification to a previously awarded contract to exercise options for design agent and engineering support services for the Rolling Airframe Missile.
Fewer Rate Cuts
Besides the broad-based job gains last month, the unemployment rate fell to 4.1% from 4.2%. Economists and market analysts say the resilient labor market and the continuing strength of the broader economy give the US central bank reason to be more cautious in easing its monetary policy. Inflationary pressure could prevent rate cuts this year.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,830.86 | 2.22 | 0.05% |
| Dow Jones Industrial Average | 41,938.45 | -696.75 | -1.63% |
| S&P 500 | 5,827.04 | -91.21 | -1.54% |
| NASDAQ | 19,161.63 | -317.25 | -1.63% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CACI | 431.24 | 15.33 | 3.69% |
| TTEK | 41.02 | 1.10 | 2.76% |
| LDOS | 149.44 | 3.69 | 2.53% |
| SAIC | 116.14 | 2.38 | 2.09% |
| BAH | 132.47 | 2.39 | 1.84% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CACI | 431.24 | 15.33 | 3.69% |
| LDOS | 149.44 | 3.69 | 2.53% |
| BAH | 132.47 | 2.39 | 1.84% |
| SAIC | 116.14 | 2.38 | 2.09% |
| AVAV | 165.03 | 1.62 | 0.99% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| MRCY | 41.9 | -1.86 | -4.25% |
| CG | 50.32 | -1.99 | -3.80% |
| ACN | 349.79 | -7.94 | -2.22% |
| FLR | 48.23 | -1.09 | -2.21% |
| PLTR | 67.26 | -0.97 | -1.42% |
