Executive Mosaic’s GovCon Index lost steam and finished 0.63% lower at $141.19. Wall Street ended mixed on mid-week, with the Dow Jones Industrial losing 0.12% and the benchmark S&P 500 gaining 0.10%. The tech-heavy Nasdaq Composite (+0.08%) extended its winning streak to nine consecutive sessions.
According to market observers, the CBOE Volatility Index, or fear gauge, declined for the eighth consecutive session to register its longest losing streak since Oct. 12, 2015. The ten-year Treasury yield also dropped further to 4.5%. Fortunately, the Middle East conflict has minimal effect on the global supply chain.
Meanwhile, the Mortgage Bankers Association reported that mortgage rates recorded the biggest one-week drop last week in over a year. The average contract interest rate for 30-year fixed-rate mortgages fell from 7.86% to 7.61% for $726,000 or less conforming loan balances. The pause on interest rate hikes and the latest employment report triggered the drop.
Federal Reserve Chair Jerome Powell told the Division of Research and Statistics of the central bank that while the U.S. economy is flexible and dynamic, it is subject to shocks. Thus, the forecasters must “think outside” traditional economic models.
Over half of the GovCon Index constituents (19 stocks) finished in the red on Wednesday. The top three performers were the Carlyle Group (Nasdaq: CG), BAE Systems, and CAE (NYSE: CAE). CGI (NYSE: GIB) shed 2.49% to lead the decliners. In its conference call, Carlyle CEO Harvey Schwartz said he expects product development to accelerate and sees further growth in sales and distribution in the coming quarters.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 141.19 | -0.89 | -0.63% |
| Dow Jones Industrial Average | 34,112.27 | -40.33 | -0.12% |
| S&P 500 | 4,382.78 | 4.40 | 0.10% |
| NASDAQ | 13,650.41 | 10.55 | 0.08% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| CG | 30.08 | 0.71 | 2.42% |
| BAH | 124.79 | 1.64 | 1.33% |
| CAE | 21.2 | 0.25 | 1.19% |
| ACN | 317.82 | 2.63 | 0.83% |
| RTX | 83.2 | 0.53 | 0.64% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| ACN | 317.82 | 2.63 | 0.83% |
| BAH | 124.79 | 1.64 | 1.33% |
| CG | 30.08 | 0.71 | 2.42% |
| RTX | 83.2 | 0.53 | 0.64% |
| BA | 191.83 | 0.42 | 0.22% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GIB | 99.27 | -2.53 | -2.49% |
| VVX | 41.6 | -0.79 | -1.86% |
| CW | 204.72 | -3.68 | -1.77% |
| PLTR | 18.49 | -0.31 | -1.65% |
| HII | 228.52 | -3.72 | -1.60% |
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