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December 21 Market Report: Executive Mosaic’s GovCon Index Turns Green, Wall Street Rally Resumes

December 21 Market Report: Executive Mosaic’s GovCon Index Turns Green, Wall Street Rally Resumes

Executive Mosaic’s GovCon Index turned green, with gainers lifting the total to $4,609.23 (+0.88%). All the major U.S. indexes atoned for their sharp drops on mid-week. The Dow Jones Industrial Average climbed more than 300 points, while the Nasdaq Composite ticked higher. The S&P 500 resumed its rally and is within 1% of its all-time high.

The movement of the GovCon Index on Thursday was the opposite of Wednesday. This time, 27 constituents advanced, and only three, ICF (Nasdaq: ICFI), Mercury Systems (Nasdaq: MRCY), and Fluor Corporation (NYSE: FLR), ended in the red. The top performers were Accenture (NYSE: ACN) and Maximus (NYSE: MMS). Nine other stocks had gains of more than 1%.

Defense stocks Lockheed Martin (NYSE: LMT) and General Dynamics (NYSE: GD) rose on reports of new contract awards. The former’s aeronautics business segment secured a contract from the Naval Air Systems Command, while the latter’s business unit clinched four contracts with the Canadian government. 

Lockheed’s contract is worth $135 million, and it will procure various special tooling and special test equipment to support production, retrofit modifications and flight test instrumentation for F-35 jets. Also, the contract will serve the U.S. Air Force, Marine Corps, Navy, Foreign Military Sales customers and non-U.S. Department of Defense participants.

The $1.3 billion contract of General Dynamics Mission Systems–Canada will support Canada’s Army’s Land Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) system.  

Two economic reports showing a 4.9% annualized GDP rate in the third quarter and a modest rise in initial jobs claims to 205,000 in the week ending December 16 buoyed the stock market. However, the benchmark ten-year note fell 0.8 basis points to 3.870%. Investors are hopeful the Santa Rally begins on December 22, 2023.

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Total 4,609.23 40.69 0.88%
Dow Jones Industrial Average 37,404.35 322.35 0.87%
S&P 500 4,746.75 48.40 1.03%
NASDAQ 14,963.87 185.93 1.26%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
ACN 348.75 9.25 2.72%
MMS 83.91 1.85 2.25%
PLTR 17.59 0.34 1.97%
CG 40.91 0.62 1.54%
BAESY 56.45 0.80 1.43%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
ACN 348.75 9.25 2.72%
LMT 448.02 5.42 1.22%
GD 252.43 2.87 1.15%
HON 205.05 2.15 1.06%
NOC 459.22 2.06 0.45%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
ICFI 132.88 -0.73 -0.55%
MRCY 36.77 -0.16 -0.43%
FLR 39.01 -0.02 -0.05%
SAIC 123.1 0.38 0.31%
GIB 106.8 0.41 0.39%