Executive Mosaic’s GovCon Index went against the red tide on Wall Street, closing 0.07% higher at $4,873.37. The Dow Jones Industrial Average (-1.35%) shed 530 points, its worst day since March 2023. The benchmark S&P 500 (-1.235) had its worst performance since February, while the Nasdaq Composite (-1.40%) did not escape the selloff.
Several Federal Reserve officials’ comments favoring a higher-for-longer interest rate environment dampened investors’ sentiment. Some analysts say the jump in crude oil prices above $90 on Thursday could further delay the Feds’ rate cut timeline.
Meanwhile, large-cap Lamb Weston (NYSE: LW) plunged 19.37%. The food processing company and one of the world’s largest producers and processors of frozen French fries cut its outlook for 2024. It blamed the transition to a new enterprise resource planning system for the lower-than-expected earnings in Q3 fiscal 2023.
On the GovCon Index, decliners outnumbered gainers. Defense stocks L3Harris Technologies (NYSE: LHX), RTX (NYSE: RTX), and Lockheed Martin (NYSE: LMT) outperformed to lead 11 advancers. However, Kratos Defensive & Security Solutions (Nasdaq: KTOS) was the worst performer among the 19 decliners.
On April 4, 2024, the U.S. Navy awarded BAE Systems Land & Armaments a $79.2 million cost-plus-fixed-fee modification to a previously awarded contract for Amphibious Combat Vehicles. The total cumulative face value of the contract is now $2.83 billion. The U.S. Air Force awarded General Dynamics (NYSE: GD) Mission Systems a $17.2 million cost-plus-fixed-fee task order for the U.S. Battlefield Information Collection and Exploitation System trusted network environment cross domain solution.
Philadelphia Fed President Harker said Thursday that inflation is still too high despite a resilient economy. In a virtual LinkedIn event, Minneapolis Fed President Neel Kashkari said the central bank may not need to cut interest rates at all in 2024 if inflation continues to move sideways. Richmond Fed President Barkin said the Feds are “smart” to delay rate cuts until there is greater clarity about inflation.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,873.37 | 3.18 | 0.07% |
| Dow Jones Industrial Average | 38,596.98 | -530.16 | -1.35% |
| S&P 500 | 5,147.21 | -64.28 | -1.23% |
| NASDAQ | 16,049.08 | -228.38 | -1.40% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LHX | 209.59 | 5.32 | 2.60% |
| RTX | 99.31 | 1.76 | 1.80% |
| LMT | 454.04 | 6.14 | 1.37% |
| TXT | 95.5 | 1.14 | 1.21% |
| VVX | 46.17 | 0.50 | 1.09% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LMT | 454.04 | 6.14 | 1.37% |
| LHX | 209.59 | 5.32 | 2.60% |
| NOC | 459.48 | 2.47 | 0.54% |
| RTX | 99.31 | 1.76 | 1.80% |
| GD | 293.22 | 1.53 | 0.52% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| KTOS | 17.64 | -0.46 | -2.54% |
| FLR | 41.7 | -0.64 | -1.51% |
| GIB | 106.78 | -1.53 | -1.41% |
| MMS | 80.03 | -0.87 | -1.08% |
| MRCY | 28.43 | -0.30 | -1.04% |
