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January 23 Market Report: Executive Mosaic’s GovCon Index and Dow Jones Slip, Corporate Earnings in Focus

January 23 Market Report: Executive Mosaic’s GovCon Index and Dow Jones Slips, Corporate Earnings in Focus

Executive Mosaic’s GovCon Index slipped 0.57% to $4,615.98 on Tuesday, while the Dow Jones Industrial Average (-0.25%) closed lower due to mixed corporate earnings. The Nasdaq Composite (+0.43%) inched higher, and so did the S&P 500 (+0.29%), with a fresh record.

The earnings season picked up steam as big American companies reported quarterly results. Dow Jones members Verizon (NYSE: VZ) and Proctor & Gamble (NYSE: PG) popped after beating earnings estimates. The ten -year Treasury yield rose to 4.14% on the bond market but still below 5%.

On the GovCon Index, 19 constituents fell into negative territory. Lockheed Martin (NYSE: LMT) and Boeing (NYSE: BA) led the decliners and pulled the index down. RTX (NYSE: RTX) was the GovCon Index and S&P 500 top performer. RTX and Lockheed Martin were the trending tickers but in separate directions. The former surged 5.33% after reporting better-than-expected results, while the latter sunk 4.16% due to weaker sales in the fourth quarter of 2023.

Chris Calio, RTX’s chief operating officer, said demand for products and services in commercial aerospace and defense segments has never been stronger. Jim Taiclet, Lockheed Martin’s chairman and CEO credits the strong demand for its all-domain portfolio of advanced defense tech solutions for the solid finish to 2023. Boeing fell 1.6% as United Airlines (Nasdaq: UAL) rethinks its order for new planes following the grounding of its 79 737 Max 9 aircraft.      

Interest rate discussions took a backseat as investors shifted their focus to corporate earnings. According to FactSet, the percentage of S&P 500 companies reporting positive earnings surprises thus far is below average. It notes that the subpar performances relative to estimates are mainly from the financial sector. 

The Federal Open Market Committee will meet later this month. However, before the blackout period, many Fed officials intimated a slower approach to rate cuts.

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Total 4,615.98 -26.19 -0.57%
Dow Jones Industrial Average 37,905.45 -96.36 -0.25%
S&P 500 4,864.60 14.17 0.29%
NASDAQ 15,425.94 65.65 0.43%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
RTX 89.55 4.53 5.33%
VVX 40.06 1.01 2.59%
FLR 37.56 0.42 1.13%
HON 202.94 1.90 0.95%
ACN 369.86 2.65 0.72%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
RTX 89.55 4.53 5.33%
ACN 369.86 2.65 0.72%
HON 202.94 1.90 0.95%
NOC 467.92 1.30 0.28%
VVX 40.06 1.01 2.59%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
LMT 439.67 -19.09 -4.16%
KTOS 18.06 -0.53 -2.85%
SAIC 128.52 -2.56 -1.95%
BA 211.5 -3.43 -1.60%
PLTR 17.33 -0.27 -1.53%