Executive Mosaic’s GovCon Index slipped 0.39% to $4,650.38 to snap its five-day winning streak. US stocks tumbled at the start of 2024, although the Dow Jones Industrial Average (+0.07%) gained slightly. The Nasdaq Composite (-1.63%) lost steam, while the S&P 500 (-0.57%) finished lower.
Mega-cap tech stocks were big winners last year, but slumped on Tuesday. The sharp drops of Apple (Nasdaq: AAPL) and Advanced Micro Devices (Nasdaq: AMD) resulted in Nasdaq’s worst first trading day since 2016. Notably, all the Magnificent Seven stocks closed in the red.
On the GovCon Index, only one-third or ten constituents posted gains. Only top performer RTX (NYSE: RTX) advanced more than 1%. Four in the losing bunch, led by Palantir Technologies (NYSE: PLTR) and Boeing (NYSE: BA), sunk more than 3%.
On Jan. 2, 2024, the Naval Air Systems Command awarded Boeing and Textron’s (NYSE: TXT) business unit, Bell Helicopter, a $21.4 million contract involving the MV-22 Osprey aircraft. Boeing and Bell will produce and deliver 59 line-clearance kits and 18 integrated aircraft survivability equipment A-Kits. They will also install 16 IASE A-Kits for the MV-22 Osprey jets.
Market analysts say the slight market pullback or trend reversal is normal, if not expected. Investors look forward to the first rate cut and how much interest rates will come down in 2024. According to Ned Davies Research, stocks do well during monetary easing cycles and typically rally 12% on average after the first Fed rate cut.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Total | 4,650.38 | -18.09 | -0.39% |
| Dow Jones Industrial Average | 37,715.04 | 25.50 | 0.07% |
| S&P 500 | 4,742.83 | -27.00 | -0.57% |
| NASDAQ | 14,765.94 | -245.41 | -1.63% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| RTX | 85.22 | 1.08 | 1.28% |
| KBR | 55.9 | 0.49 | 0.88% |
| CACI | 326.29 | 2.43 | 0.75% |
| TTEK | 168.18 | 1.25 | 0.75% |
| LMT | 456.12 | 2.88 | 0.64% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LMT | 456.12 | 2.88 | 0.64% |
| CACI | 326.29 | 2.43 | 0.75% |
| NOC | 470.09 | 1.95 | 0.42% |
| TTEK | 168.18 | 1.25 | 0.75% |
| RTX | 85.22 | 1.08 | 1.28% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| PLTR | 16.58 | -0.59 | -3.44% |
| BA | 251.76 | -8.90 | -3.41% |
| FLR | 37.89 | -1.28 | -3.27% |
| GIB | 103.91 | -3.30 | -3.08% |
| KTOS | 19.76 | -0.53 | -2.61% |
