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February 13 Market Report: Executive Mosaic’s GovCon Index Retreats, Stubborn Inflation Sparks Selloff

Home Financial Reports February 13 Market Report: Executive Mosaic’s GovCon Index Retreats, Stubborn Inflation Sparks Selloff
February 13 Market Report: Executive Mosaic’s GovCon Index Retreats, Stubborn Inflation Sparks Selloff

Executive Mosaic’s GovCon Index dropped 1.15% to $4,697.07, ending its five-day winning streak. Wall Street was shellshocked by stubborn inflation, causing the blue-chip Dow Jones Industrial Average (-1.35%) to shed 524.63 points. The S&P 500 (-1.37%) and Nasdaq Composite (-1.80%) plunged on widespread losses.

The Dow Jones had its worst day performance since March 2023, while all 11 primary sectors of the S&P 500 finished lower. More than 80% or 2,675 Nasdaq constituents declined. Mega-cap tech stocks Amazon.com (Nasdaq: AMZN) and Microsoft (Nasdaq: MSFT) dropped more than 2%. 

On the GovCon Index, only three of 30 stocks advanced. Mercury Systems (Nasdaq: MRCY) and Curtiss-Wright (NYSE: CW) had very slim gains, but top performer Leidos Holdings (NYSE: LDOS) rose 5.89% after reporting better-than-expected earnings. Monday’s winners, V2X (NYSE: VVX) and Palantir Technologies (NYSE: PLTR), sank 5% and 4.15% to lead the decliners.

Fortune 500 company Leidos impressed investors with its fourth quarter and full year 2023 results. Revenue for the year increased 7% to $15.4 billion versus 2022, while net income in Q4 rose 27.7% year-over-year to $230 million. “With a strong finish to the year, Leidos delivered on all of its financial commitments,” said Tom Bell, Leidos CEO.

Market observers expected inflation to ease considerably but Bureau of Labor Statistics data showed otherwise. The consumer price index increased 0.3% in January, although inflation reading declined to 3.1%. With this latest development and still elevated inflation, CME Group’s initial rate cut forecast moved to May from March.  

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Average 4,697.07 -1.81 -1.15%
Dow Jones Industrial Average 38,272.75 -524.63 -1.35%
S&P 500 4,953.17 -68.67 -1.37%
NASDAQ 15,655.60 -286.95 -1.80%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
LDOS 121.28 6.72 5.87%
MRCY 30.04 0.16 0.54%
CW 228.91 0.27 0.12%
HII 275.11 -0.63 -0.23%
LMT 426.52 -1.55 -0.36%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
LDOS 121.28 6.72 5.87%
CW 228.91 0.27 0.12%
MRCY 30.04 0.16 0.54%
RTX 90.59 -0.55 -0.60%
KTOS 17.8 -0.58 -3.16%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
VVX 37.24 -1.96 -5.00%
CG 43.39 -1.92 -4.24%
PLTR 24.01 -1.04 -4.15%
AVAV 122.15 -4.21 -3.33%
MMS 81.31 -2.65 -3.16%