Executive Mosaic’s GovCon Index fell 0.63% to $4,884.21, a sudden retreat from a strong showing Monday. Wall Street lost momentum as U.S. stocks drowned in red tide. The Dow Jones (-1.47%) shed 570 points, while the S&P 500 (-1.57%) and Nasdaq Composite (-2.04%) plunged on renewed inflation pressures.
Leidos (NYSE: LDOS), a GovCon Index component, outperformed in the sea of red with its 6.53% gain. GE HealthCare (Nasdaq: GEHC) sunk 14.3% after reporting weaker-than-expected sales and profits in Q1 2024.
Besides Leidos, only Tetra Tech (Nasdaq: TTEK), AeroVironment (Nasdaq: AVAV), and Booz Allen Hamilton (NYSE: BAH) advanced on Tuesday. Kratos Defense & Security Solutions (Nasdaq: KTOS) and Palantir Technologies (NYSE: PLTR) led 26 GCI decliners. The index posted a 1.59% month-on-month loss.
Leidos hit an all-time high in intraday trading but settled lower at $140.22. Based on its first-quarter results, revenue and net income rose 7.5% and 72.6% year-over-year to $3.97 billion and $283 million. The technology solutions provider and defense vendor also increased its financial guidance. “We fully expect that 2024 will showcase our commitment to profitable growth,” said Thomas Bell, CEO of Leidos.
On month-end, the Defense Logistics Agency awarded Northrop Grumman Systems, Northrop Grumman’s (NYSE: NOC) security company, a minimum $84.8 million delivery order and modification to a four-year subsumable base contract for the manufacture and production of B-2 forward duct assemblies.
A headwind for stocks was the rise of the Employment Cost Index to 1.2% in the first quarter of 2024. The Bureau of Labor Statistics reported that compensation growth increased by 0.9% compared to the previous quarter. Also on Tuesday, the ten-year Treasury yield spiked to 4.682%.
Andrew Brenner, head of international fixed income at NatAlliance Securities, said the markets are in full fear mode ahead of the Feds’ rate decision on Wednesday. Besides a forgettable April, some market analysts think that only one rate cut or zero this year is possible.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,884.21 | -31.00 | -0.63% |
| Dow Jones Industrial Average | 37,815.92 | -570.17 | -1.49% |
| S&P 500 | 5,035.69 | -80.48 | -1.57% |
| NASDAQ | 15,657.82 | -325.26 | -2.04% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LDOS | 140.22 | 8.60 | 6.53% |
| TTEK | 194.72 | 1.52 | 0.79% |
| AVAV | 159.79 | 0.55 | 0.35% |
| BAH | 147.67 | 0.09 | 0.06% |
| ICFI | 144.29 | -0.08 | -0.06% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LDOS | 140.22 | 8.60 | 6.53% |
| TTEK | 194.72 | 1.52 | 0.79% |
| AVAV | 159.79 | 0.55 | 0.35% |
| BAH | 147.67 | 0.09 | 0.06% |
| ICFI | 144.29 | -0.08 | -0.06% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| KTOS | 17.82 | -0.84 | -4.50% |
| PLTR | 21.97 | -0.86 | -3.77% |
| CG | 44.8 | -1.51 | -3.26% |
| BA | 167.84 | -5.65 | -3.26% |
| MRCY | 28.2 | -0.89 | -3.06% |
