Executive Mosaic’s GovCon Index is on a roll this week, rising 0.64% to $4,981.28 for its third consecutive daily gain. The blue-chip Dow Jones Industrial Average (+0.77%) rose nearly 300 points, while the Nasdaq Composite (-0.79%) and benchmark index S&P 500 (-0.25%) declined from their record highs.
Chip stocks retreated Thursday, led by the 6.03% and 3.54% dips of Micron Technology (Nasdaq: MU) and AI king NVIDIA (Nasdaq: NVDA). Gilead Sciences (Nasdaq: GILD) popped 8.46% for its best day performance since 2022. The Phase 3 trial results of the biotech firm’s twice-yearly antiviral injection showed zero infections and 100% efficacy to help prevent HIV in women.
Defense stocks Northrop Grumman (NYSE: NOC), Lockheed Martin (NYSE: LMT) and Leidos Holdings (NYSE: LDOS) outperformed on the GovCon Index, although Accenture (NYSE: ACN) was the top performer among 22 gainers with +7.29%. Worst performers AeroVironment (Nasdaq: AVAV) and Mercury Systems (Nasdaq: MRCY) plunged 7.17% and 4.28%, respectively.
Professional services company Accenture reported a 1% revenue drop in Q3 fiscal 2024 to $16.5 billion compared to Q3 fiscal 2023. However, new bookings rose 22% year-over-year to $21.1 billion, including over $900 million in generative AI bookings. The Carlyle Group (Nasdaq: CG) advanced 3.64% after it agreed to purchase Energean’s assets in Croatia, Egypt, and Italy for up to $945 million. The private equity firm also announced the creation of a new Mediterranean-focused oil and gas company post transaction.
On June 20, 2024, the Missile Defense Agency awarded Lockheed Martin Rotary & Missions Systems an extension to the indefinite-delivery/indefinite-quantity contract to develop and sustain the MDA’s Objective Simulation Framework modeling and simulation system. The total contract value is $282.7 million.
Meanwhile, the U.S. Air Force awarded Northrop Grumman Mission Systems a contract for Combat Air Forces Distributed Mission Operations services with a ceiling value of $189 million. The contract provides distributed training to capable Air Force trainers worldwide and establishes a virtual environment for distributed training events.
Also, on Thursday, the Labor Department released the latest jobless claims report that showed applications for unemployment benefits declined to 238,000 from a ten-month high of 243,000 the week before. While the labor market continues to show resiliency, Rubeela Farooqi, chief U.S. economist at High-Frequency Economics, expects a material weakening in worker demand ahead.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,981.28 | 31.85 | 0.64% |
| Dow Jones Industrial Average | 39,134.76 | 299.90 | 0.77% |
| S&P 500 | 5,473.17 | -13.86 | -0.25% |
| NASDAQ | 17,721.59 | -140.64 | -0.79% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| ACN | 306.16 | 20.81 | 7.29% |
| CG | 41 | 1.44 | 3.64% |
| NOC | 434.48 | 8.65 | 2.03% |
| LDOS | 146.01 | 2.14 | 1.49% |
| LMT | 466.34 | 6.34 | 1.38% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| ACN | 306.16 | 20.81 | 7.29% |
| NOC | 434.48 | 8.65 | 2.03% |
| LMT | 466.34 | 6.34 | 1.38% |
| LDOS | 146.01 | 2.14 | 1.49% |
| LHX | 224.1 | 1.65 | 0.74% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| AVAV | 203.59 | -15.72 | -7.17% |
| MRCY | 26.61 | -1.19 | -4.28% |
| FLR | 44.71 | -0.64 | -1.41% |
| PLTR | 25.56 | -0.26 | -1.01% |
| CW | 276.2 | -2.40 | -0.86% |
