Executive Mosaic’s GovCon Index snapped its winning streak, sliding 0.45% to $5,264.46. Wall Street turned red after a strong finish mid-week due to fears of recession. The Nasdaq Composite (-2.30%) and S&P 500 (-1/37%) sunk, while the Dow Jones Industrial Average (-1.21%) shed nearly 495 points.
Social media giant Meta Platforms’ (Nasdaq: META) better-than-expected Q2 2024 earnings helped the stock rise 4.92% and survive the tech selloff. However, chip designer Arm Holdings (Nasdaq: ARM) plunged 15.72% due to management’s lower earnings guidance. Moderna (Nasdaq: MRNA) tanked 21.01% after the vaccine maker trimmed its full-year sales forecast.
The GovCon Index retreated following three consecutive daily gains to start the week. Only six stocks ended in positive territory, with Tetra Tech (Nasdaq: TTEK) popping 9.02% to $232.48. Boeing (NYSE: BA) and HII (NYSE: HII) were the worst performers, declining 6.45% and 4.64%, respectively.
Tetra Tech reported multiple achievements in Q3 fiscal 2024. In the quarter ending June 30, 2024, revenue, operating income, and backlog rose 11%, 32% and 19% year-over-year to record highs of $1.34 billion, $129 million and $5.23 billion. Its $1.52 EPS, a 42% jump from Q3 fiscal 2023, was also a new record. The company also announced a Board-approved 5-for-1 stock split on Sept. 6.
Boeing continues to bleed cash and faces several challenges, including safety issues and legal cases. However, some analysts say the leadership change might lead to a turnaround. Robert Ortberg will assume the post of president and CEO on Aug. 8. Bert W. Subin, an analyst from Stifel Nicolaus, gave the airline stock a buy rating and raised its price target to $235. The current share price is $178.31.
HII declined 4.64% despite its latest quarterly results showing revenue and profit growth. In Q2 2024, total revenues and net earnings increased 6.8% and 33.1% to $2.98 billion and $173 million compared to Q2 2024. Its president and CEO, Chris Kastner, expects the shipbuilding operating margin to improve in the second half of the year.
The major U.S. stock indexes lost momentum due to the decline in the ISM Manufacturing Index in July, moderating economic growth, and a slowdown in the labor market. Some economists raised concerns about a recession if the Federal Reserve further delays the rate cut.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,264.46 | -23.76 | -0.45% |
| Dow Jones Industrial Average | 40,347.97 | -494.82 | -1.21% |
| S&P 500 | 5,446.68 | -75.62 | -1.37% |
| NASDAQ | 17,194.15 | -405.25 | -2.30% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| TTEK | 232.48 | 19.24 | 9.02% |
| NOC | 493.36 | 9.04 | 1.87% |
| LMT | 548.86 | 6.94 | 1.28% |
| LHX | 229.22 | 2.33 | 1.03% |
| CACI | 463.91 | 2.43 | 0.53% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| TTEK | 232.48 | 19.24 | 9.02% |
| NOC | 493.36 | 9.04 | 1.87% |
| LMT | 548.86 | 6.94 | 1.28% |
| CACI | 463.91 | 2.43 | 0.53% |
| LHX | 229.22 | 2.33 | 1.03% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BA | 178.31 | -12.29 | -6.45% |
| HII | 267 | -12.98 | -4.64% |
| CG | 47.76 | -1.98 | -3.98% |
| VVX | 50.31 | -1.82 | -3.49% |
| MRCY | 34.38 | -1.17 | -3.29% |
