GovCon Index Marked 6th Straight Winning Week, Nasdaq Set a New Record

Executive Mosaic’s GovCon Index marked another winning week, recovering from Thursday’s sharp loss and ending 0.64% higher at $5,055.57 before the Memorial Day weekend. The index, which tracks the stock performances of 30 major government contractors, gained 0.08% week-on-week for its sixth straight positive week.

On Wall Street, the Nasdaq Composite closed at 16,920.79, a new record high and a 1.4% weekly gain. The S&P 500 ended the week 0.03% higher, while the blue-chip Dow Jones Industrial Average lost 2.3% overall.

Flour (NYSE: FLR) was Friday’s top performer among 24 advancers on the GCI with +4.25%. The American multinational engineering and construction firm also had the most percentage gain (+7.62%) during the week.

Boeing (NYSE: BA) lost 6.48% in five trading sessions, bringing its year-to-date loss to 33.05%. Brian West, CFO of Boeing, said Thursday that deliveries will slow in Q2 2024. The plane maker also projects negative free cash flow for the year due to continued cash burn.

On May 24, 2024, the U.S. Air Force, through the Air Force Life Cycle Management Center, awarded Boeing Defense Space and Security a $7.47 billion contract involving Joint Direct Attack Munition. Boeing’s defense business unit will also supply JDAM tail kits, spares, repairs and technical and Laser Joint Direct Attack Munition sensor kits.

The major U.S. stock indexes have maintained their gains thus far in 2024 due to strong corporate earnings. About 80% of S&P 500 companies that have reported quarterly results beat earnings expectations. However, rate cut uncertainty remains the headwind for stocks. The Feds might even raise its policy rate due to stubborn inflation.

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