Executive Mosaic’s GovCon Index suffered two sharp drops to start the shortened week, resulting in its first weekly loss in seven weeks. Still, because of Friday’s 1.13% gain, GCI advanced 2.31% month-on-month. On a year-to-date basis, the index, which tracks the stock performances of 30 major government contractors, is up 7.08%.
The top three Wall Street indexes ended negative for the week, led by the Nasdaq Composite’s 1.1% loss. Due to stubborn inflation and rate-cut uncertainties, the Dow Jones Industrial Average and S&P 500 lost 0.98% and 0.51%, respectively.
On the GovCon Index, decliners outnumbered advancers on Tuesday and Wednesday and then reversed in the subsequent two trading sessions. V2X (NYSE: VVX) climbed 8.43% during the week following its 4.16% gain before the weekend. Flour Corporation (NYSE: FLR) was the second-best performer with 7.83%.
Boeing (NYSE: BA), the worst performing GCI stock thus far in 2024 (-31.86%), had a 3.14% weekly gain. NASA and the plane maker aborted the first crewed launch of Boeing’s Starliner spacecraft minutes before liftoff Saturday. The next attempt is June 5 at the latest.
Meanwhile, the timing of a potential rate cut by the Federal Reserve remains at the forefront of discussions. However, the higher-than-anticipated inflation readings dim chances of high interest rates ending soon. Most policymakers need more months of data showing a clearer inflation outlook.
