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March 20 Market Report: Executive Mosaic’s GovCon Index Rises Again, Wall Street Buoyed by Clear Rate Path

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March 20 Market Report: Executive Mosaic’s GovCon Index Rises Again, Wall Street Buoyed by Clear Rate Path

Executive Mosaic’s GovCon Index advanced 0.74% to $4.919.04. All three major U.S. stock indexes jumped following a clear direction of interest rates. The Nasdaq Composite climbed 0.89%, while the Dow Jones Industrial Average (+1.03%) and S&P 500 (+0.89%) closed at new all-time highs.

The market mood changed from gloom to boom after two-day Federal Open Market Committee meeting. Around 81% and 73% of NYSE and Nasdaq stocks advanced mid-week. Ford Motor (NYSE: F) popped 4.88% after the easing of emission standards. The ten-year Treasury yield fell nearly 3 basis points to 4.28%.  

Like on Tuesday, 24 GovCon Index stocks advanced, although one or Leidos (NYSE: LDOS), was flat. Boeing (NYSE: BA), Palantir Technologies (NYSE: PLTR), and Carlyle Group (Nasdaq: CG) were the top winning stocks. CACI International (NYSE: CACI) and Maximus (NYSE: MMS) led the five unlucky ones.

Boeing, a GCI and Dow Jones component, climbed 3.67% after its CFO, Brian West, revealed how the airplane manufacturer is fixing safety standard concerns. However, West also said the company expects a $4.5 billion cash drain in Q1 2024. 

On March 20, 2024, the U.S. Army awarded General Dynamics Information Technology, a part of General Dynamics (NYSE: GD), a $55.25 million time-and-materials contract for sustainment and technical support services for U.S. Army Intelligence and Security Command.

CACI secured a single-award technology task order of up to $239 million to modernize the U.S. Army’s Global Secret Internet Protocol Router network. It also includes the application of commercial solutions for classified technology to increase options for secure user access and mobility.

As anticipated, the press conference of Fed Chairman Jerome Powell was the market mover. He said the FOMC projects three rate cuts this year, possibly 25 basis points per cut, with a year-end target rate of 4.625%. The forecast by the end of 2025 is 3.9%.

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Average 4,919.04 36.61 0.74%
Dow Jones Industrial Average 39,512.13 401.37 1.03%
S&P 500 5,224.62 46.11 0.89%
NASDAQ 16,369.41 202.62 1.25%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
BA 187.78 6.64 3.67%
PLTR 24.57 0.77 3.24%
CG 46.38 1.18 2.61%
AVAV 149.18 3.50 2.40%
KTOS 17.51 0.37 2.16%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
BA 187.78 6.64 3.67%
AVAV 149.18 3.50 2.40%
NOC 470.75 3.27 0.70%
LMT 440.41 3.22 0.74%
GD 282.55 2.85 1.02%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
CACI 368.7 -1.63 -0.44%
MMS 83.38 -0.32 -0.38%
KBR 60.38 -0.05 -0.08%
VVX 43.57 -0.03 -0.07%
RTX 94.85 -0.01 -0.01%