Executive Mosaic’s GovCon Index rose 0.33% Friday to $5,617.83, its highest close on record. The index, which tracks the stock performances of 30 major government contractors, registered a 2.04% week-on-week gain. It also matched the six-week winning streaks of the Dow Jones Industrial Average and S&P 500 Index.
The blue-chip Dow Jones (+1%), broader S&P 500 (+0.9%) and tech-heavy Nasdaq Composite (+0.8%) also ended positive for the week. For the year, the GovCon Index is up 20.34%.
Flour Corporation (NYSE: FLR) outperformed during the week. The industrial stock popped 8.2% mid-week and advanced 7.72% in five days. Market analysts expect the engineering and construction firm to be active as natural disaster recovery from hurricanes begins.
Regarding Boeing (NYSE: BA), the striking union members will vote on a contract settlement on Oct. 23. The International Association of Machinists and Aerospace Workers said Secretary of Labor Julie Sie assisted with the negotiated proposal, which now includes several key improvements. A ratification will end the union strike. Still, the airline stock gained 2.64% for the week.
Meanwhile, reporting of Q3 2024 earnings results continues. FactSet data shows that 14% of S&P 500 companies have reported, and 79% beat EPS estimates. Defense contractors and GovCon Index constituents Lockheed Martin (NYSE: LMT) and RTX (NYSE: RTX) will present on Oct. 22.
