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December 19 Market Report: Executive Mosaic’s GovCon Index Ticks Up, Major Indexes Near All-Time Highs

December 19 Market Report: Executive Mosaic’s GovCon Index Ticks Up, Major Indexes Near All-Time Highs

Executive Mosaic’s GovCon Index followed its strong start this week with a 0.45% gain to $4,629.17. The Dow Jones Industrial Average (+0.68%) registered its fifth straight record close, while the S&P 500 (+0.59%) is close to matching a record set two years ago. Nasdaq’s 0.66% gain was the most for the day.

Wall Street’s hot streak continues as the rate-cut fever consumes investors. On the NYSE, the ratio of advancing stocks versus decliners is 1.20 to 1. Gainers also ruled over losers in the tech-heavy Nasdaq Composite, 1.09 to 1.

AeroVironment (Nasdaq: AVAV) and Mercury Systems (Nasdaq: MRCY) were the top GovCon Index tickers among 24 advancers. The Carlyle Group (Nasdaq: CG) and CACI (NYSE: CACI) led six losing constituents. After Tuesday’s gain, AeroVironment’s year-to-date gain is now 52.35%.

Carlyle signed a definitive agreement to purchase a market-leading SaaS company. Exiger confirmed that it will receive a majority investment from funds managed by Carlyle and Insight Partners, a global software investor. Exiger provides supply chain solutions to government agencies, corporations, and banks.

Meanwhile, CACI announced winning a single-award, five-year task order from the Defense Medical Intelligence and Global Health Security. Under this contract, CACI will provide expertise to the Defense Intelligence Agency National Center for Medical Intelligence. 

CACI will also enhance activities assisting NCMI in providing medical intelligence support on foreign health threats and other medical issues to protect U.S. interests worldwide.

Economists and market analysts expect rate cuts to begin soon or in March 2024. However, Atlanta Federal Reserve President Raphael Bostic thinks otherwise. “There is no current urgency for the Federal Reserve to reduce U.S. interest rates given the strength of the economy and the need to be sure that inflation will return to the central bank’s 2% target,” he said.

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Total 4,629.17 20.83 0.45%
Dow Jones Industrial Average 37,557.92 251.90 0.68%
S&P 500 4,768.37 27.81 0.59%
NASDAQ 15,003.22 98.41 0.66%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
AVAV 130.5 4.68 3.72%
MRCY 37.64 0.91 2.48%
RTX 82.62 1.93 2.39%
J 128.74 2.35 1.86%
FLR 40.27 0.73 1.85%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
AVAV 130.5 4.68 3.72%
BA 263.51 3.10 1.19%
J 128.74 2.35 1.86%
HII 257.01 1.99 0.78%
ICFI 135.08 1.94 1.46%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
CG 41.47 -0.32 -0.77%
CACI 318.24 -1.46 -0.46%
NOC 464.16 -1.26 -0.27%
HON 204.6 -0.50 -0.24%
LDOS 107.71 -0.18 -0.17%