August 25 Market Close: GovCon Index Gives Back AM Gains, Nears Correction Territory

GovConIndexDOWNThe GovCon Index‘s streak of declines extended to a sixth consecutive day Tuesday with a gain of 1.297 percent to 69.628 as U.S. stocks also plummeted late in the trading session.

GovCon Index and GovCon Wire parent company Executive Mosaic has determined the Index to officially be near correction territory — 10 percent down from its most recent high — as it has declined 9.9 percent from its July 16 close of 77.281.

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The Index traded up nearly 1.5 percent during the 10 a.m. Eastern time hour then settled into negative territory in the 3 p.m. hour, around the same time major U.S. stock indices started to trade near and then below the gain line.

The Dow Jones Industrial Average reached as high as a 441-point gain in Tuesday’s morning session a day after that index concluded its worst three-day point decline in history and the S&P 500 composite index closed in correction territory for a second straight day,  according to CNBC.

CNBC said the Dow and S&P are in the midst of their biggest declines since Oct. 29, 2008 and both of those indices and the NASDAQ composite index are officially in correction territory.

U.S. investors initially drew confidence from China’s decision to cut its one-year lending rate to 4.6 percent but markets declined quickly in the last hour of trading after concerns over global growth returned, CNBC reported.

The Dow Jones Industrial Average fell 1.29 percent to 15, 666.44, the S&P 500 composite index declined 1.35 percent to 1, 867.62 and the NASDAQ composite index lost 0.44 percent — or 19.76 points — to 4, 506.49.

Top Percentage Gainers

Company $ Current Price $ Change % Change
Serco Group 1.88 +0.16 +9.49%
Maximus 59.62 +0.98 +1.67%
Health Net 63.42 +0.69 +1.10%
Lockheed Martin 198.98 +1.52 +0.77%
BAE Systems 27.43 +0.16 +0.59%

Market Summary

  Advancing Issues      7 (43.33%)
  Declining Issues    23 (56.66%)
  Unchanged Issues      0

Executive Mosaic’s GovCon Index is a composite index that tracks 30 of the largest publicly-traded Government Contracting (GovCon) firms.

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