Executive Mosaic’s GovCon Index advanced 4.75% to $141.28 amid a raging Middle East war. Many expected the latest geopolitical tension to rattle the major indexes. Instead, the Dow Jones Industrial Average (+0.59%), S&P 500 Index (+0.63%), and the Nasdaq Composite (+0.39%) posted modest gains to start the week.
Tel Aviv-35, Israel’s plunged 6.5% on Sunday. It was the index’s most significant loss in three years, although it recovered fast from the selloff and gained 0.2% on Monday. However, besides concerns about future interest rate hikes by the Federal Reserve, investors now fear higher oil prices and inflation.
For the GovCon Index, only Accenture (NYSE: CAN) and Fluor Corporation (NYSE: FLR) did not advance. Northrop Grumman (NYSE: NOC) led the 28 gainers, rising 11.43% to $471.61. L3Harris Technologies (NYSE: LHX), HII (NYSE: HII), Lockheed Martin (NYSE: LMT), and General Dynamics (NYSE: GD) rose by at least 8.4%. Lockheed Martin extended its dividend growth streak to 21 years after it announced a 5% dividend hike.
Israel declared an all-out war against Hamas after the militant group staged a surprise attack last Saturday. Brent crude and West Texas Intermediate (WTI) rose by 3% and might rise higher due to supply disruptions. Moreover, the risk picture could deteriorate if other countries supportive of either party join the war.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 141.28 | 6.71 | 4.75% |
| Dow Jones Industrial Average | 33,604.65 | 197.07 | 0.59% |
| S&P 500 | 4,335.66 | 27.16 | 0.63% |
| NASDAQ | 13,484.24 | 52.90 | 0.39% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 471.61 | 48.37 | 11.43% |
| LHX | 180.21 | 16.32 | 9.96% |
| HII | 221.44 | 18.92 | 9.34% |
| LMT | 436.53 | 35.80 | 8.93% |
| GD | 238.48 | 18.54 | 8.43% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 471.61 | 48.37 | 11.43% |
| LMT | 436.53 | 35.80 | 8.93% |
| HII | 221.44 | 18.92 | 9.34% |
| GD | 238.48 | 18.54 | 8.43% |
| CACI | 333.35 | 18.15 | 5.76% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| FLR | 36.64 | -0.03 | -0.08% |
| ACN | 312.01 | -0.18 | -0.06% |
| GIB | 99.67 | 0.33 | 0.33% |
| CG | 29.72 | 0.13 | 0.44% |
| BA | 188.49 | 1.11 | 0.59% |
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