Executive Mosaic’s GovCon Index finished lower for the second consecutive session, declining 0.79% to $141.06. US stocks fell as the ten-year Treasury seems on track to hit 5% soon. The Dow Jones Industrial Average shed 0.81%, while the S&P 500 (-0.85%) and Nasdaq Composite (-0.96%) also felt the pressure from the bond market.
While rising Treasury yields continue to squeeze Wall Street, Fed Chairman Jerome Powell said the upward movement of longer-term bond yields is doing some of the central bank’s work by slowing the economy. He hopes it takes the pressure off inflation and will not require additional interest rate hikes.
The earnings season is underway, and most analysts expect S&P 500 companies to report slight growth in earnings per share. They are also keenly watching oil price movements due to the Israel-Hamas conflict. International oil benchmark Brent crude climbed to as high as $91 per barrel, while U.S. benchmark West Texas Intermediate rose to $87.98.
More GovCon Index stocks closed in the red (26 of 30 constituents) this time, with only Lockheed Martin (NYSE: LMT), Maximus (NYSE: MMS), and Parsons (NYSE: PSN) posting gains. The Carlyle Group (NYSE: CG) and BAE Systems led the decliners. Globalstar (NYSE: GSAT) was unchanged.
No one could guess the next move of the Feds on interest rates. “A range of uncertainties, both old and new, complicate our task of balancing the risk of tightening monetary policy too much against the risk of tightening too little,” Chair Powell told the Economic Club of New York on Thursday.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 141.06 | -1.11 | -0.79% |
| Dow Jones Industrial Average | 33,414.17 | -250.91 | -0.75% |
| S&P 500 | 4,278.00 | -36.60 | -0.85% |
| NASDAQ | 13,186.18 | -128.12 | -0.96% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LMT | 449.18 | 3.11 | 0.70% |
| MMS | 77.67 | 0.47 | 0.61% |
| PSN | 57.93 | 0.28 | 0.49% |
| GIB | 98.44 | -0.12 | -0.12% |
| NOC | 489.94 | -0.82 | -0.17% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LMT | 449.18 | 3.11 | 0.70% |
| MMS | 77.67 | 0.47 | 0.61% |
| PSN | 57.93 | 0.28 | 0.49% |
| CAE | 21.4 | -0.11 | -0.51% |
| GIB | 98.44 | -0.12 | -0.12% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CG | 27.54 | -1.40 | -4.84% |
| BAESY | 51.28 | -1.65 | -3.12% |
| ICFI | 127.95 | -2.93 | -2.24% |
| TTEK | 159.21 | -3.22 | -1.98% |
| J | 132.82 | -2.35 | -1.74% |
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