Executive Mosaic’s GovCon Index shed a modest 0.18% to end lower at $140.93, but the downslide since Monday continues. Wall Street flashed red, too, with the Dow Jones Industrial Average (-0.39%) falling for the second straight session. The S&P 500 (-0.43%) ended its eight-day winning streak, while the Nasdaq Composite (-0.40%) lost steam to snap its nine-day streak.
The sudden rise of bond yields following the auction shook the stock market and doused investor sentiment. The benchmark ten-year and 30-year Treasury yields went up 12 and 11 basis points to 4.634% and 4.772%, respectively. Even the two-year yield jumped to 5.022%.
Federal Reserve Chair Jerome Powell also intimated during the IMF-sponsored conference that the central bank is open to additional interest rate hikes. Powell said, “We know that ongoing progress toward our 2% goal is not assured: Inflation has given us a few head fakes. If it becomes appropriate to tighten policy further, we will not hesitate to do so.”
On the GovCon Index, 21 constituents finished in negative territory. Globalstar (NYSE: GSAT), Cisco Systems (Nasdaq: CSO), and General Dynamics (NYSE: GD) posted the largest percentage declines. The top two gainers were KBR (NYSE: KBR) and Tetra Tech (Nasdaq: TTEK).
Some market analysts are looking ahead to the US presidential election in November 2024, a potential headwind. However, the stock market could finish this year higher as, historically, stock rallies during the fourth year of presidential terms. As of this writing, the Dow Jones is up 2.25% year-to-date, while the S&P 500 (+13.23%) and Nasdaq maintain (+29.19%) positive returns.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 140.93 | -0.26 | -0.18% |
| Dow Jones Industrial Average | 33,980.56 | -131.71 | -0.39% |
| S&P 500 | 4,363.87 | -18.91 | -0.43% |
| NASDAQ | 13,596.23 | -54.18 | -0.40% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| KBR | 52.63 | 1.01 | 1.96% |
| TTEK | 154.17 | 2.73 | 1.80% |
| CAE | 21.52 | 0.32 | 1.51% |
| CW | 206.79 | 2.07 | 1.01% |
| FLR | 34.58 | 0.34 | 0.99% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| TTEK | 154.17 | 2.73 | 1.80% |
| CW | 206.79 | 2.07 | 1.01% |
| BA | 193.49 | 1.66 | 0.87% |
| ICFI | 133.23 | 1.04 | 0.79% |
| KBR | 52.63 | 1.01 | 1.96% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GSAT | 1.33 | -0.03 | -2.21% |
| CSCO | 52.27 | -0.73 | -1.38% |
| GD | 239.05 | -2.97 | -1.23% |
| TXT | 75.3 | -0.84 | -1.10% |
| MMS | 75.8 | -0.69 | -0.90% |
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