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January 5 Market Report: Executive Mosaic’s GovCon Index Extends Skid, Major Indexes Post Gains to End Lackluster Week

January 5 Market Report: Executive Mosaic’s GovCon Index Extend Skid, Major Indexes Eked Gains to End Lackluster Week

Executive Mosaic’s GovCon Index dipped 0.21% to $4,565.98, extending its skid in January to four days. Wall Street’s major indexes see-sawed between gains and losses but eventually edged higher to end a lackluster week. The ten-year Treasury yield rose above 4% after the U.S. Bureau of Labor Statistics reported a stronger-than-expected December jobs report.

Total nonfarm payroll employment increased by 216,000 last month, while the unemployment rate remained 3.7%. Employment in government health care, social assistance, and construction sectors shows an upward trend. 

The government added an average of 56,000 jobs per month in 2023, more than double the average monthly gain of 23,000 in 2022. Also, the 15 cents increase in the average hourly pay to $34.27 pushed the yearly increase to 4.1%. The Feds’ wage growth target is 3.5%.

Only ten GovCon Index constituents posted gains on Friday. Fluor Corporation (NYSE: FLR) was the runaway winner, advancing 5.02%. Consistent contract wins, growing backlog, and a diversified business portfolio are Flour’s competitive advantages. V2X (NYSE: VVX) and ICF (Nasdaq: ICFI) led 20 decliners, dropping 6.73% and 2.41%, respectively. Palantir Technologies (NYSE: PLTR), declined too and was among the heavily traded stocks on the NYSE.  

“Looking ahead to 2024, we will continue to focus on creating high-quality jobs and investing in all of America’s workers so that our economy grows from the middle out and the bottom up,” said Julie Su, the U.S. acting secretary of Labor.  

However, economists and markets analysts say that while rate hikes are over, rate cuts hinge on jobs and wage growth. If employment and wage gains remain strong, the policymakers might delay cuts and keep rates higher for longer. The December CPI or inflation report coming out on Jan. 11, 2024 could be a deciding factor.

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Total 4,565.98 -9.62 -0.21%
Dow Jones Industrial Average 37,466.11 25.77 0.07%
S&P 500 4,697.24 8.56 0.18%
NASDAQ 14,524.07 13.77 0.09%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
FLR 38.31 1.83 5.02%
CACI 323.36 9.05 2.88%
BA 249 4.06 1.66%
CG 39.33 0.39 1.00%
SAIC 124.37 1.12 0.91%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
CACI 323.36 9.05 2.88%
BA 249 4.06 1.66%
FLR 38.31 1.83 5.02%
SAIC 124.37 1.12 0.91%
LDOS 108.74 0.92 0.85%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
VVX 41.04 -2.96 -6.73%
ICFI 128.95 -3.19 -2.41%
AVAV 118.3 -2.24 -1.86%
PLTR 15.98 -0.27 -1.66%
HII 252.5 -3.82 -1.49%