Executive Mosaic’s GovCon Index registered a weekly loss (-1.98%) after sliding 1.29% to $136.69 on Friday. The Dow Jones Industrial Average (-1.12%) and the S&P 500 Index (-0.48%) closed lower, but the surge of an e-commerce giant lifted the Nasdaq Composite (+0.38%) slightly higher. All three major indexes lost by more than 2% for the week.
Amazon.com (Nasdaq: AMZN) climbed 6.83% after reporting strong third-quarter earnings, over $12 billion in online advertising revenue, and vast opportunities for the fast-growing generative AI business. Besides better-than-expected quarterly earnings, Intel (Nasdaq: INTL) shares jumped 9.29% due to surging interest in AI chips.
On the GovCon Index side, 26 constituents finished the volatile week lower. BAE Systems, Globalstar (NYSE: GSAT), and Tetra Tech (Nasdaq: TTK) were the session’s top decliners. Honeywell (Nasdaq: HON) edged 0.5339% higher to lead the four advancers. The diversified technology and manufacturing company said the growth in commercial aviation, defense, and space markets drove revenues higher in the third quarter of 2023.
The earnings season has reached the mid-point with some high-profile American companies and mega-cap tech stocks have presented disappointing results. However, according to FactSet, thus far, the number of positive earnings surprises and magnitude are above their ten-year averages.
Moreover, the benchmark S&P 500 is also reporting year-over-year growth in earnings for the first time since Q3 2022. Still, a negative sentiment pervades due to the shaky economic outlook and renewed recession fears. While market analysts and economists expect the Feds to hold interest rates steady after the FOMC meeting on mid-week, one more hike by year-end is possible.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 136.69 | -1.76 | -1.29% |
| Dow Jones Industrial Average | 32,417.59 | -366.71 | -1.12% |
| S&P 500 | 4,117.37 | -19.86 | -0.48% |
| NASDAQ | 12,643.01 | 47.40 | 0.38% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| HON | 177 | 0.94 | 0.53% |
| CSCO | 51.56 | 0.19 | 0.37% |
| BA | 179.69 | 0.60 | 0.34% |
| RTX | 79.16 | 0.01 | 0.01% |
| PSN | 55.5 | -0.30 | -0.54% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| HON | 177 | 0.94 | 0.53% |
| BA | 179.69 | 0.60 | 0.34% |
| CSCO | 51.56 | 0.19 | 0.37% |
| RTX | 79.16 | 0.01 | 0.01% |
| GSAT | 1.3 | -0.04 | -2.99% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| BAH | 117.36 | -3.99 | -3.29% |
| GSAT | 1.3 | -0.04 | -2.99% |
| TTEK | 144.77 | -4.41 | -2.96% |
| CACI | 318.55 | -8.52 | -2.60% |
| MMS | 73.03 | -1.89 | -2.52% |
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