Executive Mosaic’s GovCon Index stayed positive, rising 0.36% to $5,039.19. Wall Street’s top three stock indexes lost steam towards closing and ended in the red zone. The Dow Jones Industrial Average (-0.10%) breached 40,000 at one point before settling lower, while the Nasdaq Composite (-026%) and S&P 500 (-0.21%) also turned red.
Comments by two Federal Reserve officials supporting the higher-for-longer interest rate scenario spoiled the markets’ momentum. Retail giant Walmart (NYSE: WMT) rose 6.99% after reporting strong quarterly results, including improved e-commerce and international sales. Meme stocks GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) skidded for the second consecutive day.
On the GovCon Index, gainers outnumbered decliners, 18 to 11, while L3Harris Technologies (NYSE: LHX) was flat. Top performer Mercury Systems (Nasdaq: MRCY) is on a roll, advancing 5.12% and posting its fourth consecutive daily gain. Boeing (NYSE: BA) and Honeywell (Nasdaq: HON), both Dow Jones components, were among the gainers.
Boeing jumped 3.37% on news that David Tepper’s Appaloosa hedge fund took a new position in the plane maker. Tepper owns the Carolina Panthers in the NFL. Honeywell announced a partnership with Enel North America to enhance building automation and demand response solutions for commercial and industrial organizations and ensure grid stability.
On Thursday, Richmond Fed President Tom Barkin said that while the consumer price index in April was lower, it is far from the level the central bank wants. “Demand is going to have to weaken “a little bit more” to have inflation go back to the Fed’s 2% target,” Barkin said.
Cleveland Fed President Loretta Mester also wants to hold interest rates steady. She disclosed that many of her regional contacts told her economic activity had strengthened. Mester said a solid economy gives the Feds time to wait for inflation to move in the right direction.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 5,039.19 | 18.19 | 0.36% |
| Dow Jones Industrial Average | 39,869.38 | -38.62 | -0.10% |
| S&P 500 | 5,297.10 | -11.05 | -0.21% |
| NASDAQ | 16,698.32 | -44.07 | -0.26% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| MRCY | 31.23 | 1.52 | 5.12% |
| BA | 182.96 | 5.97 | 3.37% |
| HII | 256.16 | 4.53 | 1.80% |
| KTOS | 20.59 | 0.28 | 1.38% |
| BAH | 152.55 | 1.60 | 1.06% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| BA | 182.96 | 5.97 | 3.37% |
| HII | 256.16 | 4.53 | 1.80% |
| CACI | 426.36 | 1.93 | 0.45% |
| BAH | 152.55 | 1.60 | 1.06% |
| HON | 206.62 | 1.56 | 0.76% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| CG | 43.4 | -0.66 | -1.50% |
| PSN | 76.55 | -0.85 | -1.10% |
| RTX | 104.24 | -1.11 | -1.05% |
| VVX | 46.33 | -0.48 | -1.03% |
| TXT | 87.48 | -0.70 | -0.79% |
