Executive Mosaic’s GovCon Index bounced from its sharp loss Thursday, rising 0.64% to $5,055.57. Wall Street’s major stock indexes ended positive before the Memorial Day weekend, with the Nasdaq Composite setting a new record close following a 1.1% advance. The S&P 500 (+0.705) ticked higher, while the Dow Jones Industrial Average (+0.01%) was flat.
Super Micro Computer (Nasdaq: SMCI) and QUALCOMM (Nasdaq: QCOM) advanced by more than 4%, leading the surging tech stocks. Footwear designer and distributor Deckers Outdoor (NYSE: DECK) popped 14.18% on better-than-expected quarterly results and robust demand for Hoka sneakers and Ugg boots.
The GovCon Index stormed back as 24 of its 30 components posted gains. Fluor Corporation (NYSE: FLR), Booz Allen Hamilton (NYSE: BAH) and V2X (NYSE: VVX) had substantial gains. Accenture (NYSE: ACN) was the worst performer among six decliners.
Booz Allen Hamilton jumped 4.04% after reporting impressive year-over-year increases in operating (+126.8%) and net (+123.3%) incomes in fiscal 2024. Notably, in the 12 months ending March 31, 2024, total backlog rose 8.4% to $33.8 billion from a year ago. The American government and military contractor forecast revenue growth between 8% and 11% in fiscal 2025 from $10.66 billion.
Meanwhile, the U.S. Air Force awarded Boeing (NYSE: BA), specifically Boeing Defense Space and Security, a $7.5 billion fixed-price-incentive-fee, firm-fixed-price, indefinite-delivery/indefinite-quantity contract action for Joint Direct Attack Munition.
The U.S. Navy awarded Science Application International Corp. (Nasdaq: SAIC) a $143.3 million firm-fixed-price, cost-plus-fixed-fee and cost modification to a previously awarded contract relating to the MK 48 Heavyweight Torpedo All Up Round of the MK 48 MOD 7 Heavyweight Torpedo program.
On Friday, the University of Michigan released the consumer survey results showing U.S. consumer sentiment for May. The index declined to 69.1 from 77.2 in April. According to Joanne Hsu, Survey of Consumers Director, the 8.1 index-point slide is the lowest in five months and statistically significant. People expect unemployment to rise and high interest rates to continue.
Strong corporate earnings have lifted the market, notwithstanding inflation fears. However, the momentum could stall if the U.S. Federal Reserve takes longer to initiate a rate cut, or none, this year. Some policymakers are open to rate hikes should inflation get worse.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 5,055.57 | 32.26 | 0.64% |
| Dow Jones Industrial Average | 39,069.59 | 4.33 | 0.01% |
| S&P 500 | 5,304.72 | 36.88 | 0.70% |
| NASDAQ | 16,920.79 | 184.76 | 1.10% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| FLR | 41.96 | 1.71 | 4.25% |
| BAH | 158.51 | 6.15 | 4.04% |
| VVX | 46.05 | 1.68 | 3.79% |
| PSN | 79.25 | 1.76 | 2.27% |
| KTOS | 21.54 | 0.34 | 1.60% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| BAH | 158.51 | 6.15 | 4.04% |
| HII | 256.2 | 3.32 | 1.31% |
| CACI | 429.02 | 3.30 | 0.78% |
| GD | 299.62 | 3.10 | 1.05% |
| AVAV | 199.77 | 2.56 | 1.30% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| ACN | 300.99 | -4.94 | -1.61% |
| MRCY | 31.18 | -0.30 | -0.95% |
| BAESY | 71.24 | -0.36 | -0.50% |
| CW | 280.71 | -0.90 | -0.32% |
| MMS | 85.96 | -0.16 | -0.19% |
