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February 1 Market Report: Executive Mosaic’s GovCon Index and Wall Street Rebound from Fed-Induced Selloff

February 1 Market Report: Executive Mosaic’s GovCon Index and Wall Street Rebounds from Fed-Induced Selloff

Executive Mosaic’s GovCon Index rose nearly 1% to $4,651.64 as all major indexes rebounded in a broad market rally. The Nasdaq Composite popped 1.3% after sinking 2.23% on mid-week due to a Fed-induced selloff. It was also an excellent start to February for the Dow Jones Industrial Average (+0.97%) and the S&P 500 (+1.25%).

Notably, 76% and 61% of NYSE stocks and Nasdaq constituents advanced on Thursday. Big-tech names Meta Platforms (Nasdaq: META) and Amazon.com (Nasdaq: AMZN) led the charge, with the former declaring its first-ever dividend. Peloton Interactive (Nasdaq: PTON), the worst performer, plunged 24.28%.

The top two GovCon Index performers were also from the tech-heavy index. Tetra Tech (Nasdaq: TTEK) and Mercury Systems (Nasdaq: MRCY) gained more than 3.5%. Only four of 30 GCI stocks finished in the red. Honeywell (Nasdaq: HON) led decliners with a 2.45% loss.

Tetra Tech reported double-digit organic growth in Q1 fiscal 2024 and its largest first quarter backlog. Revenue increased 37% to $1.23 billion versus Q1 fiscal 2023, while backlog climbed 24% year-over-year to $4.74 billion. The consulting and engineering services firm also secured over 1,000 individual high-end consulting projects relating to the water cycle.

Mercury Systems signed a three-year subcontract valued at $96 million max with RTX’s (NYSE: RTX) Raytheon. The main contract is for the U.S. Army’s Lower Tier Air and Missile Defense Sensor. Under the agreement, Mercury will deliver hardware to Raytheon nine LTAMDS radars to support the U.S. Army and Poland. 

Meanwhile, the ten-year Treasury yield fell to a one-month low, declining more than ten basis points to 3.86%. In a press conference on Wednesday, Fed Chairman Jerome Powell said a rate cut announcement in the next FOMC meeting in March is unlikely. However, he intimated it could happen later this year.

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Total 4,651.64 42.26 0.91%
Dow Jones Industrial Average 38,519.84 369.54 0.97%
S&P 500 4,906.19 60.54 1.25%
NASDAQ 15,361.64 197.63 1.30%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
TTEK 164.27 6.09 3.85%
MRCY 30.7 1.04 3.51%
HII 267.81 8.89 3.43%
GIB 115.1 3.28 2.93%
ICFI 142.2 3.16 2.27%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
HII 267.81 8.89 3.43%
ACN 370.91 7.03 1.93%
TTEK 164.27 6.09 3.85%
GIB 115.1 3.28 2.93%
ICFI 142.2 3.16 2.27%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
HON 197.31 -4.95 -2.45%
BA 209.81 -1.23 -0.58%
NOC 446.22 -0.54 -0.12%
BAESY 60.5 -0.04 -0.07%
LMT 429.77 0.36 0.08%