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January 17 Market Report: Executive Mosaic’s GovCon Index and Major Indexes Extend Slumps

January 17 Market Report: Executive Mosaic’s GovCon Index and Major Indexes Extend Slumps

Executive Mosaic’s GovCon Index lost 0.25% to close lower at $4,559.91. The Dow Jones Industrial (-0.25%), S&P 500 (-0.56%), and Nasdaq Composite (-0.59%) slipped anew as investors’ expectations of early rate cuts dim. 

Wall Street lost ground mid-week, with 75% and 63% of NYSE and Nasdaq stocks declining. The ten-year Treasury yield rose to 4.113% in response to the better-than-expected December retail sales report and strong consumer demand during the holiday season. 

Eight GovCon Index constituents advanced compared to only one on Tuesday. BAE Systems led the gainers that included Boeing (NYSE: BA). The aircraft manufacturer snapped its losing streak after the Federal Aviation Administration completed the inspection of 40 grounded 737 Max 9 jets. Mercury Systems (Nasdaq: MRCY), Kratos Defense & Security Solutions (Nasdaq: KTOS), and KBR (NYSE: KBR) were the top decliners.  

On Wednesday, the U.S. Navy awarded Boeing a $102.7M cost-plus-fixed-fee modification to an order against a previously issued basic ordering agreement. This modification exercises options for producing and delivering retrofit A-kits in support of anti-submarine warfare capabilities upgrades. 

Based on the CME FedWatch Tool, the chances for a March rate cut have decreased from 67% to 57%. Thus far, Fed officials who have spoken about interest rates believe the monetary policy needs to remain tight longer because upside inflation risks remain. Other policymakers want to see the job market and the broader economy cool further.  

However, Federal Open Market Committee participants can no longer grant interviews or publicly comment on central bank policies after Friday. The Federal Reserve Blackout period starts on Saturday, Jan. 20, 2024, and until Feb. 1, 2024.

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Total 4,559.91 -11.50 -0.25%
Dow Jones Industrial Average 37,266.67 -94.45 -0.25%
S&P 500 4,739.21 -26.77 -0.56%
NASDAQ 14,855.62 -88.73 -0.59%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
BAESY 61.51 0.92 1.52%
BA 203.06 2.54 1.27%
PSN 65.15 0.27 0.42%
CG 38.61 0.16 0.42%
TTEK 161.99 0.22 0.14%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
BA 203.06 2.54 1.27%
BAESY 61.51 0.92 1.52%
PSN 65.15 0.27 0.42%
TTEK 161.99 0.22 0.14%
HON 197.95 0.18 0.09%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
MRCY 30.97 -0.83 -2.61%
KTOS 18.36 -0.30 -1.61%
KBR 53.34 -0.67 -1.24%
FLR 36.69 -0.46 -1.24%
J 130.44 -1.63 -1.23%