Executive Mosaic’s GovCon Index tumbled 0.91% to $4,952.34 following a broad-based retreat. The tech-heavy Nasdaq Composite (-0.66%) and S&P 500 (-0.54%) settled lower, while the Dow Jones Industrial Average (-0.53%) extended its losing streak to six days.
Magnificent Seven stocks, except for Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT), registered losses Thursday. Software company Adobe (Nasdaq: ADBE) topped S&P 500 decliners with -13.59%. Media giant Warner Bros. Discovery (Nasdaq: WBD) popped 15.43% after announcing a plan to split the streaming studios and TV businesses into two operating divisions.
Building pressure
On another dismal day in December, the GovCon Index had 22 decliners, six more than on midweek. Parsons (NYSE: PSN) and Northrop Grumman (NYSE: NOC) led eight gainers. V2X (NYSE: VVX) dropped the most on the losers’ side with -6.61%. The index representing the government contracting sector has lost 4.1% since the start of the month.
Parsons announced a $23 million contract award from the California Department of Transportation or Caltrans late Wednesday. The tech-focused defense, intelligence, and infrastructure engineering firm will provide engineering and inspection services, as needed, for structure construction projects.
Northrop Grumman announced a board-approved and authorized additional $3.1 billion repurchase of the aerospace and defense company’s common stock. The outstanding authorized amount rose to approximately $4.2 billion. Share repurchases are subject to market conditions and upon management’s discretion.
Critical mission solutions provider V2X declined, notwithstanding the announced formation of Polar Science Alliance. The strategic joint venture with Parsons will pursue the National Science Foundation Antarctica Science and Engineering Support Contract with a ceiling value of $8 billion. Over the next two decades, PSA will provide scientific research support services for the United States Antarctic Program.
Market headwinds
The latest jobless claims data and higher-than-expected producer price index dampened investors’ sentiment. According to the Labor Department, the applications for jobless benefits rose by 17,000 to 242,000 on the week of Dec. 7, the highest level in two months.
Meanwhile, the producer price index and core PPI for Nov. increased 0.4% and 0.2%, respectively. Market analysts maintain a 95% chance of a rate cut by the US Feds next week despite a weakening labor market and stubborn inflation.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,952.34 | -45.17 | -0.91% |
| Dow Jones Industrial Average | 43,914.12 | -234.44 | -0.53% |
| NASDAQ | 19,902.84 | -132.05 | -0.66% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PSN | 97 | 1.81 | 1.90% |
| NOC | 481.51 | 5.89 | 1.24% |
| BA | 167.75 | 1.79 | 1.08% |
| PLTR | 73.2 | 0.69 | 0.95% |
| BAESY | 61.35 | 0.44 | 0.72% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 481.51 | 5.89 | 1.24% |
| PSN | 97 | 1.81 | 1.90% |
| BA | 167.75 | 1.79 | 1.08% |
| J | 136.02 | 0.90 | 0.67% |
| PLTR | 73.2 | 0.69 | 0.95% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 55.4 | -3.92 | -6.61% |
| CACI | 414 | -16.00 | -3.72% |
| CG | 53.07 | -1.74 | -3.17% |
| KTOS | 26.5 | -0.84 | -3.07% |
| GIB | 112.31 | -2.36 | -2.06% |
