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December 20 Market Report: Executive Mosaic’s GovCon Index Sinks, Broad Market Selloff Stalls Wall Street’s Rally

December 20 Market Report: Executive Mosaic’s GovCon Index Sinks, Broad Market Selloff Stalls Wall Street’s Rally

Executive Mosaic’s GovCon Index declined 1.33%, bringing the total down to $4,568.54. Wall Street’s rally stalled mid-week as the Dow Jones (-1.27%) and the S&P 500 (-1.47%) posted their worst days since early October and September, respectively. Chip stocks, including market leader NVIDIA (Nasdaq: NVDA), pulled down the Nasdaq Composite (-1.50%).

Despite the retreat, the three major indexes have positive returns year-to-date. The tech-heavy Nasdaq has the fattest gain thus far, with +41.2%. Meanwhile, Treasury yields continue their downward trend. The ten-year and two-year yields dropped to 3.876% and 4.376%.

All 30 constituents of the Dow Jones closed in the red, while only BAE Systems and Tetra Tech (Nasdaq: TTEK) in the GovCon Index advanced amid the broad market selloff. Palantir Technologies (NYSE: PLTR), AeroVironment (Nasdaq: AVAV), and Fluor Corporation (NYSE: FLR) fell more than 3% to lead 28 GCI decliners.

Also on Wednesday, The Conference Board reported that the consumer confidence index shot up for the second straight month, from 101 in November to 110.7 in December. According toDana Peterson, chief economist at The Conference Board, the increase in consumer confidence reflected more positive ratings of current business conditions and job availability.  

Market analysts believe the broad market selloff is a prelude to the stock market phenomenon known as the Santa Claus Rally. Strong buying occurs five days after Christmas and the first two days of the New Year. Investors expect a Santa Claus rally at the end of 2023, given the cooling inflation, favorable economic data, and possible start of interest rate cuts in 2024. 

Philadelphia Federal Reserve President Patrick Harker opposes more hikes and is open to lowering borrowing costs. However, he said the cuts shouldn’t be imminent, and the Feds must wait to see how things play out first.

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Total 4,568.54 -60.63 -1.33%
Dow Jones Industrial Average 37,082.00 -475.92 -1.27%
S&P 500 4,698.35 -70.02 -1.47%
NASDAQ 14,777.94 -225.28 -1.50%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
BAESY 55.65 0.51 0.92%
TTEK 165.25 0.46 0.28%
PSN 62.21 -0.15 -0.24%
ACN 339.5 -2.01 -0.59%
CACI 315.81 -2.43 -0.76%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
BAESY 55.65 0.51 0.92%
TTEK 165.25 0.46 0.28%
PSN 62.21 -0.15 -0.24%
KTOS 20.01 -0.56 -2.72%
KBR 53.53 -0.62 -1.15%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
PLTR 17.25 -0.70 -3.90%
AVAV 126.42 -4.08 -3.13%
FLR 39.03 -1.24 -3.08%
CG 40.29 -1.18 -2.85%
KTOS 20.01 -0.56 -2.72%