Executive Mosaic’s GovCon Index lost footing after a strong finish to August, sinking 1.95% to $5,432.63. Fears of a weakening economy caused the rocky start in September. The Nasdaq Composite (-3.26%) and S&P 500 (-2.12%) suffered their worst day since early August, while the Dow Jones Industrial Average (-1.51%) shed 626 points.
Wall Street lost momentum, with 81% of stocks in both NYSE and Nasdaq closing lower. The technology and energy sectors led the sharp market selloff. AI king NVIDIA (Nasdaq: NVDA) plunged 9.59% on the tech side. Oil majors, including Devon Energy (NYSE: DEV) and Philipp 66 (NYSE: PSX), declined more than 3% as crude prices dropped to their lowest levels in almost nine months.
The GovCon Index was all red on Tuesday. Boeing (NYSE: BA) was the worst performer among 30 constituents with -7.32%, although AeroVironment (Nasdaq: AVAV) and Fluor Corporation (NYSE: FLR), dropped more than 5%.
A strike looms at Boeing following the threat of members of the International Association of Machinists, or IAM. The bargaining begins after the labor contract expires on Sept. 12. Boeing is confident it could meet employees’ demands. Some market analysts say a tailwind for the airline stock is global air travel returning above pre-pandemic level.
The U.S. Navy awarded Northrop Grumman’s (NYSE: NOC) Defense Systems a $197.5 million firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the full rate production of 56,000 FMU-139D/B Bomb Tactical Electronic Fuze systems. Northrop Grumman Systems also secured a $50.5 million firm-fixed-price requirements modification from the U.S. Air Force to a previously awarded contract for repairs, spares, and engineering services.
The Manufacturing ISM Report from the Institute for Supply Management released Tuesday showed that manufacturing activity slowed in August. U.S. manufacturing contracted for the fifth consecutive month as Manufacturing PMI rose to 47.2% from 46.8% in July.
“Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and election uncertainty,” said Timothy Fiore, the ISM Manufacturing Business Survey Committee chairman.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,432.63 | -106.02 | -1.95% |
| Dow Jones Industrial Average | 40,936.93 | -626.15 | -1.51% |
| S&P 500 | 5,528.93 | -119.47 | -2.12% |
| NASDAQ | 17,136.30 | -577.32 | -3.26% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ACN | 341.88 | -0.07 | -0.02% |
| NOC | 522.69 | -0.52 | -0.10% |
| LMT | 567.22 | -0.88 | -0.15% |
| LHX | 235.28 | -1.39 | -0.59% |
| GIB | 111.9 | -0.73 | -0.65% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ACN | 341.88 | -0.07 | -0.02% |
| NOC | 522.69 | -0.52 | -0.10% |
| MRCY | 37.19 | -0.71 | -1.87% |
| GIB | 111.9 | -0.73 | -0.65% |
| LMT | 567.22 | -0.88 | -0.15% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BA | 161.02 | -12.72 | -7.32% |
| AVAV | 192.26 | -11.50 | -5.64% |
| FLR | 47.32 | -2.75 | -5.49% |
| KTOS | 21.93 | -1.01 | -4.40% |
| CG | 38.49 | -1.64 | -4.09% |
