Executive Mosaic’s GovCon Index closed 0.40% lower to $4,678.90 at the start of the holiday-shortened week. Wall Street flashed red due to the pullback of tech stocks. The Nasdaq Composite declined nearly 1%, while the Dow Jones Industrial (-0.17%) and S&P 500 (-0.60%) finished in the red too.
AI stocks, led by NVIDIA (Nasdaq: NVDA) and Advanced Micro Devices (Nasdaq: AMD), dragged the tech-heavy index down. Dow Jones components Walmart (NYSE: WMT) gained 3.23% after reporting strong quarterly sales, and beverage giant Coca-Cola (NYSE: KO) popped 2.21% with the launch of a new K-pop inspired drink.
On the GovCon Index, 22 of 30 constituents declined due to the elevated market volatility. KBR (NYSE: KBR) climbed 3.91% to lead eight gainers, while Fluor Corporation (NYSE: FLR), the worst performer, tumbled 12.73%. Palantir Technologies (NYSE: PLTR), one of the AI stock favorites, dropped 4.26%. BAE Systems (+1.49%) outperformed for the second straight session.
KBR impressed investors with its top-line growth in the fourth quarter and fiscal 2023. In the three and twelve months ending Dec. 29, 2023, revenue (organic) grew 8% and 6% year-over-year to $1.7 billion and $7 billion. The backlog and options at year-end were $21.7 billion.
Despite the $265 million net loss last year, the provider of science, technology and engineering solutions to governments announced an 11% dividend hike. According to Stuart Bradie, KBR’s president and CEO, it was a remarkable performance in fiscal 2023. For 2024, the revenue guidance is between $7.4 billion and $7.7 billion.
Flour Corporation reported a $21 million net loss in the fourth quarter of 2023 compared to the $9 million net earnings in the same quarter in 2022. Net earnings declined 4.14% year-over-year for the entire year to $139 million. The backlog at year-end was $29.4 billion, 13.08% higher than a year ago.
“In 2023, we not only reached but surpassed a critical inflection point on our journey to solidifying our position as a technical solutions leader in the global engineering and construction industry,” said David Constable, chairman and CEO of Fluor. He adds that the company is advancing with purpose and should deliver substantial shareholder value for years to come.
Meanwhile, market analysts believe NVIDIA’s earnings release on mid-week will determine the market’s movement for the rest of the week. They expect the chipmaker to report significant profit and revenue growth from the AI boom.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,768.90 | -0.64 | -0.40% |
| Dow Jones Industrial Average | 38,563.80 | -64.19 | -0.17% |
| S&P 500 | 4,975.51 | -30.06 | -0.60% |
| NASDAQ | 15,630.78 | -144.87 | -0.92% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| KBR | 57.45 | 2.16 | 3.91% |
| BAESY | 63.99 | 0.88 | 1.39% |
| HON | 198.94 | 1.77 | 0.90% |
| NOC | 453.91 | 2.95 | 0.65% |
| CW | 234.79 | 1.08 | 0.46% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| NOC | 453.91 | 2.95 | 0.65% |
| KBR | 57.45 | 2.16 | 3.91% |
| HON | 198.94 | 1.77 | 0.90% |
| CW | 234.79 | 1.08 | 0.46% |
| BAESY | 63.99 | 0.88 | 1.39% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| FLR | 36.73 | -5.36 | -12.73% |
| PLTR | 23.4 | -1.04 | -4.26% |
| MMS | 81.68 | -1.58 | -1.90% |
| ACN | 362.95 | -6.53 | -1.77% |
| GIB | 113.05 | -1.79 | -1.56% |
