Executive Mosaic’s GovCon Index turned positive after three consecutive daily losses, drifting 0.15% higher to $5,108.61. Wall Street’s major stock indexes recovered from a massive tailspin that began Aug 1. The S&P 500 and Nasdaq Composite rallied more than one percent, while the Dow Jones Industrial Average (+0.76%) gained nearly 300 points.
Real estate and financials led the rebound of all 11 S&P 500 primary sectors. About 73% of NYSE stocks finished with gains compared to only 7% on Monday. Band-Aid’s parent company, Kenvue (NYSE: KVUE) rose 14.68%. Uber Technologies (NYSE: UBER) popped 10.93% after the ridesharing firm reported double profits in Q2 2024 versus Q1 2023 and a 19% year-over-year increase in gross bookings.
The top performing GovCon Index stock, Palantir Technologies (NYSE: PLTR), was also the day’s market mover, where the AI stock jumped +10.38%. AeroVironment (Nasdaq: AVAV) and Mercury Systems (Nasdaq: MRCY) belonged to the 18 gainers, while Carlyle Group (Nasdaq: CG) and V2X (NYSE: VVX) topped one dozen decliners.
Palantir Technologies reported strong second-quarter financial results in post-trading Monday. In the three months ending June 30, 2024, free cash flow, revenue and adjusted net income climbed 22%, 27% and 84% year-over-year to $148.7 million, $678 million and $221 million. The $371 million government revenue accounts for 55% of the total revenue.
In a letter to shareholders dated Aug. 5, Alexander Karp, CEO and co-founder of Palantir, said the business is growing at an exceptional rate despite the overcrowding in the enterprise software business. Because of the ever-increasing demand for AI, the full-year revenue guidance is $2.75 billion, 24% year-over-year growth.
Also, on Tuesday, Accenture (NYSE: ACN) and S&P Global (NYSE: SPGI) announced forming a strategic collaboration to fuel generative AI innovation across the financial services industry, including enhancing AI development and benchmarking.
Market analysts said concerns about future U.S. economic growth due to softer manufacturing reports and weak jobs numbers last month triggered investors’ risk-off moves. But with decent corporate earnings growth, an interest rate cut soon could be another tailwind for stocks.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,116.10 | 7.49 | 0.15% |
| Dow Jones Industrial Average | 38,997.66 | 294.39 | 0.76% |
| S&P 500 | 5,240.03 | 53.70 | 1.04% |
| NASDAQ | 16,366.85 | 166.77 | 1.03% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 26.59 | 2.50 | 10.38% |
| AVAV | 169.62 | 5.48 | 3.34% |
| MRCY | 33.6 | 0.73 | 2.22% |
| ACN | 318.68 | 4.94 | 1.57% |
| CW | 268.54 | 3.36 | 1.27% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 169.62 | 5.48 | 3.34% |
| ACN | 318.68 | 4.94 | 1.57% |
| CW | 268.54 | 3.36 | 1.27% |
| CACI | 446.73 | 3.30 | 0.74% |
| PLTR | 26.59 | 2.50 | 10.38% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CG | 39.34 | -1.57 | -3.84% |
| VVX | 45.75 | -1.30 | -2.76% |
| NOC | 486.53 | -6.10 | -1.24% |
| BA | 165.04 | -1.99 | -1.19% |
| GIB | 105.01 | -1.24 | -1.17% |
