Executive Mosaic’s GovCon Index pulled back following a winning week, declining 0.87% to $5,168.10. The Dow Jones Industrial Average (+0.99%) finished with a new all-time high after adding 440 points. Also, on Monday, the S&P 500 (+0.30%) and Nasdaq Composite (+0.27%) closed near-record levels.
Wall Street reacted positively to President-elect Donald Trump’s US Treasury secretary choice. Nine S&P primary sectors ended with gains except for information technology and energy. However, Super Micro Computer (Nasdaq: SMCI) was the stellar performer for the second straight day with +15.87%.
Defense Stocks Retreat
The GovCon Index is back in the red as high-priced defense stocks Lockheed Martin (NYSE: LMT) and L3Harris Technologies (NYSE: LHX) declined more than 3% to start the week. Boeing (NYSE: BA) led 13 advancers, while Mercury Systems (Nasdaq: MRCY) was flat.
The shares of prime contractor Lockheed Martin tanked in reaction to comments by the co-head of the incoming Department of Government Efficiency. Elon Musk said he favored drones over the expensive F-35 stealth fighters. A Pentagon spokesman defended the combat-capable aircraft, while Lockheed Martin backed the F-35 capabilities and will work with the new administration.
Meanwhile, the US Navy awarded L3Harris Technologies an indefinite delivery, indefinite quantity contract worth up to $999 million. The defense contractor and IT company will deliver resilient communications technology, or its Multifunctional Information Distribution System Joint Tactical Radio System Terminals, to the US and coalition forces over the next five years.
Another decliner, BAE Systems, received a $212.1 million firm-fixed-price contract from the US Navy. The aerospace and defense company will maintain, modernize, and repair the USS Green Bay for fiscal 2025 docking selected restricted availability.
Safe Choice for the Treasury
Investors and business leaders say Scott Bessent is a safe choice to head the Department of Treasury. The nominee is a hedge fund executive and global investor. Expect Bessent to execute Trump’s economic agenda, including tax and tariff policies.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,168.10 | -44.83 | -0.87% |
| Dow Jones Industrial Average | 44,736.57 | 440.06 | 0.99% |
| NASDAQ | 19,054.84 | 51.19 | 0.27% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BA | 153.1 | 3.81 | 2.55% |
| J | 139.3 | 1.94 | 1.41% |
| CG | 54.39 | 0.74 | 1.38% |
| ICFI | 135.52 | 1.23 | 0.92% |
| GIB | 112.6 | 1.00 | 0.90% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BA | 153.1 | 3.81 | 2.55% |
| ACN | 361.29 | 2.63 | 0.73% |
| J | 139.3 | 1.94 | 1.41% |
| HON | 230.6 | 1.49 | 0.65% |
| ICFI | 135.52 | 1.23 | 0.92% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LMT | 521.89 | -20.33 | -3.75% |
| LHX | 240.6 | -7.56 | -3.05% |
| BAESY | 65.31 | -1.80 | -2.68% |
| PSN | 96.73 | -2.32 | -2.34% |
| NOC | 485.27 | -11.60 | -2.33% |
