Author: Aidan Daly|| Date Published: March 18, 2024
Executive Mosaic’s GovCon Index recorded its first weekly loss in eight weeks after sliding 0.19% to $4,880.45. Decliners also outnumbered gainers on Friday. The index, which tracks the stock performances of 30 major government contractors, lost 1.17% overall week-on-week.
Wall Street was swamped with economic reports, mostly inflation-related reports or data. Inflation remains persistent, as evidenced by the elevated consumer price index and producer price index. It was also a losing week for the Dow Jones Industrial Average (-0.1%), S&P 500 (-0.1%), and Nasdaq Composite (-0.7%).
The GovCon Index closed in the red in three trading sessions. There were no significant breakouts or no established performance leaders during the week. However, AeroVironment (Nasdaq: AVAV) and Boeing (NYSE: BA) underperformed, losing 10.61% and 8.04%, respectively, in five days.
Boeing ended a five-day losing streak with a modest 0.76% gain before the weekend. The plane manufacturer had a tumultuous week due to safety and quality standard issues. On March 11, the New York Times reported that Boeing failed in 33 of 89 product audits by The Federal Aviation Administration. The National Transportation Safety Board is also conducting an investigation.
Investors have become less optimistic this mid-March. Due to cooling but stubborn inflation, the Feds will likely delay interest rate cuts, a tailwind for stocks. The Federal Open Market Committee will meet on Tuesday, March 19, 2024, and Fed Chairman Jerome Powell will discuss the outcome and rate decision on Wednesday.
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