Executive Mosaic’s GovCon Index lost steam mid-week, sliding 0.56% lower to $4,835.43. The earnings season went into high gear but was inadequate to buoy the markets. All three major indexes hardly moved, although the S&P 500 (+0.02%) and Nasdaq Composite (+0.10%) ended positive on very modest gains.
Tech stocks were the market movers Wednesday, with electric carmaker Tesla (Nasdaq: TSLA) and toy & game company Hasbro (Nasdaq: HAS) popping 12.06% and 11.85%, respectively. Chipmaker NVIDIA (Nasdaq: NVDA) declined 3.33% after announcing it agreed to acquire Run:ai, a Tel Aviv, Israel-based software startup.
The GovCon Index reversed its movement from Tuesday, as 21 stocks finished in the red and nine advanced. The decline of General Dynamics (NYSE: GD), Boeing (NYSE: BA) and three more high-priced stocks pulled down the price-weighted index. Mercury Systems (Nasdaq: MRCY) and BAE Systems were the top performers.
General Dynamics fell nearly 4% despite reporting 8.6% and 9.5% year-over-year increases in revenue and net earnings in the first quarter of 2024. The aerospace and defense company failed to deliver G700 jets due to higher costs and supply chain challenges. However, management said deliveries should resume after obtaining a certification for the business jets from the Federal Aviation Administration before March 31.
Boeing reported a $355 million net loss in Q1 2024 and an 8% revenue drop to $16.6 billion compared to Q1 2023. Notably, the plane maker burned $3.8 billion in cash. Its retiring CEO, David Calhoun, said in a memo to employees that Boeing is in a tough moment in the near term. The priority is to address safety and quality issues to regain public confidence.
Also, on Wednesday, President Joe Biden signed a foreign aid bill that provides military assistance to Ukraine, Israel, and the Indo-Pacific. According to the American Enterprise Institute, the recipients of the $61 billion aid to Ukraine are top defense contractors and weapons-makers. The nine companies, all GovCon Index constituents, include General Dynamics and Boeing.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,835.43 | -27.06 | -0.56% |
| Dow Jones Industrial Average | 38,460.92 | -42.77 | -0.11% |
| S&P 500 | 5,071.63 | 1.08 | 0.02% |
| NASDAQ | 15,712.75 | 16.11 | 0.10% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| MRCY | 28.48 | 1.04 | 3.79% |
| BAESY | 68.99 | 0.90 | 1.32% |
| HII | 275.84 | 1.37 | 0.50% |
| SAIC | 128.47 | 0.39 | 0.30% |
| KBR | 64.38 | 0.18 | 0.28% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| HII | 275.84 | 1.37 | 0.50% |
| MRCY | 28.48 | 1.04 | 3.79% |
| BAESY | 68.99 | 0.90 | 1.32% |
| SAIC | 128.47 | 0.39 | 0.30% |
| TTEK | 189.29 | 0.35 | 0.19% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GD | 281.11 | -11.61 | -3.97% |
| BA | 164.33 | -4.85 | -2.87% |
| TXT | 94.01 | -1.27 | -1.33% |
| BAH | 144.39 | -1.57 | -1.08% |
| ACN | 313.54 | -3.29 | -1.04% |
