Executive Mosaic’s GovCon Index turned positive mid-week, rising 0.14% to $4,891.06. Wall Street’s major indexes settled mixed, with the Dow Jones Industrial Average (+0.23%) closing modestly higher. The S&P 500 (-0.34%) and Nasdaq Composite (-0.33%) declined due to inflation risks and rate cut uncertainty.
Federal Reserve Chairman Jerome Powell announced in the post-FOMC meeting that interest rates will stay higher until the Feds are on a sustainable path towards the 2% target. “I don’t know how long it will take,” he said.
Advanced Micro Devices (Nasdaq: AMD) and Super Micro Computer (Nasdaq: SMCI) reported disappointing earnings results, causing the semiconductor stocks to tumble 8.91% and 14.03%, respectively. Following the rate decision, most regional bank stocks advanced.
On the GovCon Index, Carlyle Group (Nasdaq: CG) declined 8.55%, although the top three performers, V2X (NYSE: VVX), Boeing (NYSE: BA) and Kratos Defense & Security Solutions (Nasdaq: KTOS) gained more than 2%.
V2X secured a $75 million contract to do follow-on work advancing the next generation of threat detection and response to chemical, biological, radiological and nuclear hazards. The award is under the CBRN Support to the Command-and-Control program. V2X will be the lead systems integrator in the first part of the five-year project.
Carlyle Group’s distributable earnings in Q1 2024 increased 59% year-over-year to $431.1 million, but the $0.18 net income per common share was significantly lower than the estimated earnings per share of $0.94.
On May 1, 2024, the U.S. Air Force awarded seven companies, including Boeing and Honeywell International (Nasdaq: HON), a potential $820 million firm-fixed-price, indefinite-delivery/indefinite-quantity contracts for the KC-46 commodities depot activation support. Work involves line-replaceable units and commodities for the KC-46A aircraft to support the Air Force fleet.
Markets were up in early trading but eventually lost steam. The consolation from Powell’s press conference was the assurance that no rate hike is on the table. However, interest rates will remain indefinitely in the 5.25% to 5.50% range.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,891.06 | 6.85 | 0.14% |
| Dow Jones Industrial Average | 37,903.29 | 87.37 | 0.23% |
| S&P 500 | 5,018.39 | -17.30 | -0.34% |
| NASDAQ | 15,605.48 | -52.34 | -0.33% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| VVX | 49.75 | 1.17 | 2.41% |
| BA | 171.46 | 3.62 | 2.16% |
| KTOS | 18.19 | 0.37 | 2.08% |
| AVAV | 162.53 | 2.74 | 1.71% |
| MRCY | 28.66 | 0.46 | 1.63% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| CACI | 407.7 | 5.47 | 1.36% |
| BA | 171.46 | 3.62 | 2.16% |
| CW | 256.98 | 3.56 | 1.40% |
| AVAV | 162.53 | 2.74 | 1.71% |
| HON | 195.3 | 2.57 | 1.33% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| CG | 40.97 | -3.83 | -8.55% |
| GIB | 99.36 | -1.86 | -1.84% |
| TTEK | 192.49 | -2.23 | -1.15% |
| PSN | 77.63 | -0.88 | -1.12% |
| LHX | 211.75 | -2.30 | -1.07% |
