Executive Mosaic’s GovCon Index declined for the second straight day, sagging 0.15% to $4,615.98. The Dow Jones Industrial Average (-0.26%) remained in the red, too, pulled down by top-weighted constituents. Tech heavyweights lifted the Nasdaq Composite (+0.36%), while the S&P 500 (+0.08) set another record high despite a moderate gain.
Netflix (Nasdaq: NFLX) rose 10.7% after reporting substantial subscriber growth. Chipmaker Advanced Micro Devices (Nasdaq: AMD) popped 5.86% to share the limelight with the streaming giant. Microsoft (Nasdaq: MSFT) rose to $405.63 at one point and pushing its valuation above $3 trillion for the first time ever. Apple (Nasdaq: AAPL) was the first to achieve the milestone.
On the GovCon side, 20 of the 30 stocks closed in the red. However, two constituents outperformed on mid-week. Textron (NYSE: TXT) and General Dynamics (NYSE: GD) gained 7.84% and 4.74%, respectively. Textron reported solid revenue and profit growth in 2023. The aerospace and defense company also gave a favorable business outlook for 2024.
Kratos Defense & Security Solutions (Nasdaq: KTOS) and Palantir Technologies (TSX: PLTR) lost more than 3% to lead decliners. Boeing (NYSE: BA) rose 1.24% on news the Federal Aviation Administration approved an inspection and maintenance process. If successful, the grounded 737-9 Max planes could resume flights. The U.S. Air Force awarded L3 Harris Technologies (NYSE: LHX) two contract modifications to previously awarded contracts totaling $57.6 million.
On Wednesday, the flash PMI reports released by the S&P Global showed economic strength. Both the Manufacturing PMI and Services PMI rose in January compared to December 2023. S&P Global said the accelerating growth of companies and sharp easing of inflation pressures are encouraging signs. Meanwhile, based on data from CME Group, the probability of rate cuts is down to 45%.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Total | 4,609.17 | -6.81 | -0.15% |
| Dow Jones Industrial Average | 37,806.39 | -99.06 | -0.26% |
| S&P 500 | 4,868.55 | 3.95 | 0.08% |
| NASDAQ | 15,481.92 | 55.98 | 0.36% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| TXT | 85.55 | 6.22 | 7.84% |
| GD | 261.18 | 11.81 | 4.74% |
| FLR | 38.26 | 0.70 | 1.86% |
| BA | 214.13 | 2.63 | 1.24% |
| ICFI | 136.14 | 1.58 | 1.17% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GD | 261.18 | 11.81 | 4.74% |
| TXT | 85.55 | 6.22 | 7.84% |
| BA | 214.13 | 2.63 | 1.24% |
| ICFI | 136.14 | 1.58 | 1.17% |
| FLR | 38.26 | 0.70 | 1.86% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| KTOS | 17.39 | -0.67 | -3.71% |
| PLTR | 16.75 | -0.58 | -3.35% |
| AVAV | 121.49 | -2.84 | -2.28% |
| KBR | 52.66 | -1.10 | -2.05% |
| LMT | 431.65 | -8.02 | -1.82% |
