Executive Mosaic’s GovCon Index rose for the third straight session to close 0.37% higher at $5,212.93. Major US indexes advanced, with the Dow Jones Industrial Average (+0.97%) notching a new record close. The S&P 500 (+0.35%) and Nasdaq Composite (+0.16%) stayed the course.
Better-than-expected corporate earnings of 95% of S&P 500 companies are tailwinds for US stocks. According to FactSet, 61% of the constituents reported positive revenues in Q3 2024. Bloomberg Intelligence said the average quarterly earnings increased 8.5% year-over-year, more than double the forecasts. Top gainer Super Micro Computer (Nasdaq: SMCI) rose 11.62% to extend its week-long rally.
Sustained recovery
The GovCon Index finished with gains Friday as it recovered from last week’s sharp selloff. Palantir Technologies (NYSE: PLTR) and Boeing (NYSE: BA) led 21 advancers, while Mercury Systems (Nasdaq: MRCY) topped nine decliners. Defense stocks Lockheed Martin (NYSE: LMT) and RTX (NYSE: RTX) extended their three- and four-day winning streaks.
A Jefferies analyst maintained a buy rating for Boeing and raised the price target to $200. At $149.29 per share, BA is down -42.73% year-to-date. The US Air Force awarded Boeing a $129.2 million ceiling, undefinitized contract action for the F-15 Japan Super Interceptor program. This contract is for the Japan Air Self-Defense Force.
The US Navy awarded Lockheed Martin a $869.9 million fixed-price-incentive-firm-target contract to procure long lead materials, parts, components, and associated support in support of the F-35 Lot 20 production aircraft for the Air Force, Navy, Marine Corps, non-US Department of Defense partners, and Foreign Military Sales customers.
Also, on Friday, Raytheon, an RTX business, secured a $439 million firm-fixed-priced modification with the US Navy to a previously awarded contract to exercise options for fiscal 2025 Evolved Seasparrow Missile Block II Guided Missile assemblies.
Back to inflation
Market analysts say investors will shift their focus to inflation now that the post-election rally is over. The personal consumption expenditures index and core PCE are out next week, and an increase could influence the US Fed’s rate decision. Wall Street traders see a 53% chance of a 25-basis points rate cut in December and fewer, or two, not four, in 2025.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,212.93 | 19.48 | 0.37% |
| Dow Jones Industrial Average | 44,296.51 | 426.16 | 0.97% |
| S&P 500 | 5,969.34 | 20.63 | 0.35% |
| NASDAQ | 19,003.65 | 31.23 | 0.16% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 64.35 | 2.99 | 4.87% |
| BA | 149.29 | 5.88 | 4.10% |
| KBR | 61.76 | 1.53 | 2.54% |
| MRCY | 40.94 | 0.96 | 2.40% |
| FLR | 55.79 | 1.07 | 1.96% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BA | 149.29 | 5.88 | 4.10% |
| HII | 198.95 | 3.65 | 1.87% |
| CW | 370.82 | 3.27 | 0.89% |
| HON | 229.11 | 3.02 | 1.34% |
| PLTR | 64.35 | 2.99 | 4.87% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| MMS | 73.09 | -1.87 | -2.49% |
| CACI | 468.78 | -6.70 | -1.41% |
| ICFI | 134.29 | -1.24 | -0.91% |
| VVX | 60.69 | -0.47 | -0.77% |
| ACN | 358.66 | -2.39 | -0.66% |
