Executive Mosaic’s GovCon Index surged Tuesday, rising 0.52% to its highest close of $5,217.71. Wall Street ended mixed due to the retreat of tech stocks. The Nasdaq Composite (-1.28%) and S&P 500 (-0.50%) plunged, while the Dow Jones Industrial Average (0.50%) gained 203 points.
Big tech names are on tap to present their second-quarter results this week. Howmet Aerospace (NYSE: HWM) and PayPal (Nasdaq: PYPL) were among the top performers, jumping 13.23% and 8.59%, respectively. Both companies reported strong earnings. Merck (NYSE: MRK) fell nearly 10% after the pharma giant lowered its profit outlook, notwithstanding the 7% year-over-year revenue growth in Q2 2024.
On the GovCon Index, 18 stocks powered the index’s surge. RTX (NYSE: RTX) and the Carlyle Group (Nasdaq: CG) advanced more than 2% to lead the gainers. Leidos Holdings (NYSE: LDOS) and Booz Allen Hamilton (NYSE: BAE) were the worst performers among the dozen losing stocks.
The Department of the Navy Office of Small Business Programs awarded Raytheon, an RTX business, two Mentor-Protégé Agreements. Under the pair of three-year contracts, Raytheon will provide mentorship for operational AI on system design, software architecture, systems integration, IT security constraints and authority-to-operate requirements in a collaborative environment.
Leidos sunk 4.57% despite the earnings beat. In Q2 2024, revenue rose 7.7% to $4.13 billion compared to Q2 2023, while net income climbed 43.8% to $358 million from a year ago. Moreover, the defense contractor’s free cash flow and backlog reached $351 million and $36.49 billion at the quarter’s end.
Booz Allen Hamilton dropped 3.92% following a strong recovery on Monday. The stock has lost nearly 13.4% in five days. Nevertheless, management said the global management and technology consulting company maintains a strategic and operational momentum after Q1 fiscal 2025.
The two-day Federal Open Market Committee or policy-setting committee meeting began Tuesday, and Fed Chairman Jerome Powell will announce the rate decision on Wednesday. Market analysts believe the July meeting is in preparation for the initial rate cut in September.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,217.71 | 27.33 | 0.52% |
| Dow Jones Industrial Average | 40,743.33 | 203.40 | 0.50% |
| S&P 500 | 5,436.44 | -27.10 | -0.50% |
| NASDAQ | 17,147.42 | -222.78 | -1.28% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| RTX | 116.88 | 2.44 | 2.13% |
| CG | 48.52 | 0.97 | 2.04% |
| NOC | 486.73 | 9.44 | 1.98% |
| LMT | 537.66 | 10.02 | 1.90% |
| CW | 285.47 | 4.33 | 1.54% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LMT | 537.66 | 10.02 | 1.90% |
| NOC | 486.73 | 9.44 | 1.98% |
| CW | 285.47 | 4.33 | 1.54% |
| GD | 293.01 | 3.52 | 1.22% |
| ACN | 329.2 | 3.00 | 0.92% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LDOS | 145.98 | -6.99 | -4.57% |
| BAH | 138.82 | -5.67 | -3.92% |
| PLTR | 26.37 | -0.71 | -2.62% |
| FLR | 46.93 | -0.74 | -1.55% |
| MRCY | 34.64 | -0.44 | -1.25% |
