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January 26 Market Report: Executive Mosaic’s GovCon Index Rebounds, Mixed Finish on Wall Street

January 26 Market Report: Executive Mosaic’s GovCon Index Rebounds, Mixed Finish on Wall Street

Executive Mosaic’s GovCon Index rose 0.89% to $4,625.36, ending its losing streak before the weekend. Only the Dow Jones Industrial Average (+0.16%) of the three major indexes advanced, a fifth record close in 2024. The S&P 500 (-0.07%) lost steam, while the Nasdaq Composite fell (-0.36%) on the weakness of chip stocks. 

Intel (Nasdaq: INTC) sunk 11.91%, its first double-digit decline in two years. The chipmaker gave a weaker current-quarter guidance. Mega-cap tech stocks Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT) also turned red. 

The GovCon Index finished the week higher despite more decliners than gainers. Headline ticker Booz Allen Hamilton (NYSE: BAH) shot up 13.58% to $146.38 after presenting exceptional Q3 fiscal 2024 results. Other top performers were ICF (Nasdaq: ICFI) and CACI (NYSE: CACI). Textron (NYSE: TXT) and Tetra Tech (Nasdaq: TTEK) were among the 17 decliners.

In the three months ending Dec. 31, 2024, Booz Allen’s revenue increased 12.9% to $2.6 billion versus Q3 fiscal 2023, while net jumped ballooned 374.6% year-over-year to $145.6 million. The vendor to the intelligence community also increased its dividend by 8.5%. 

Boeing (NYSE: BA) gained 1.78% to $205.47 as 737 Max 9s prepare to resume flights. The Federal Aviation Administration gave the green light on the condition that the grounded jets completed the regulator’s thorough inspection and maintenance process.   

On Friday, the US Bureau of Economic Analysis reported that the Personal Consumption Expenditures Price Index held steady at 2.6% on a yearly basis. The annual Core PCE Price Index, a preferred inflation measure by the Feds, fell to 2.9% in December. It was the first drop below 3% since 2021. 

The Federal Open Market Committee members will meet this week to be followed by a policy statement by the Fed Chairman on Jan. 31, 2024. Investors hope interest rate cuts start soon.