Executive Mosaic’s GovCon Index registered a third straight daily loss, sliding 0.66% to $5,083.86. Wall Street’s major exchanges lost steam towards week’s end, with the Dow Jones Industrial Average (-0.93%) shedding almost 380 points. The S&P 500 (-0.71%) and Nasdaq Composite (-0.81%) declined as rotation from tech stocks intensified.
AI king NVIDIA (Nasdaq: NVDA) dipped 2.61% Friday and lost 8.75% in five trading sessions. CrowdStrike (Nasdaq: CRWD) plunged 11.1% due to a global tech outage that disrupted businesses, including airlines and hospital operations. Published reports say a faulty software update by the cybersecurity firm caused the havoc.
The GovCon Index widened its daily loss following two modest losses since mid-week. Only five of 30 stocks finished with gains, led by Mercury Systems (Nasdaq: MRCY). Textron (NYSE: TXT) and V2X (NYSE: VVX) were the worst performers among the 25 decliners.
Textron dipped 2.47% despite reporting higher revenue, earnings per share and cash flow in Q2 2024 compared to the same quarter last year. However, net income declined 1.52% year-over-year to $259 million, while the eAviation segment reported an $18 million loss in the quarter.
RTX (NYSE: RTX) rose nearly 1% after its business unit, Pratt & Whitney, and SR Technics announced the induction of the first Pratt & Whitney GTF, or geared turbofan, engine at the maintenance, repair and operations service provider’s facility in Zurich, Switzerland.
The U.S. Navy awarded Northrop Grumman (NYSE: NOC) Aerospace Systems a $1.45 billion modification to a previously awarded fixed-priced-incentive-fee, cost-plus-fixed-fee, cost contract. This modification is for procuring four and five E-2D Advanced Hawkeye aircraft for the Navy and Japan, respectively.
Northrop Grumman, RTX and General Dynamics (NYSE: GD) will present their second-quarter financial results next week. Market analysts expect the three defense contractors to report higher revenues and earnings.
The S&P 500 and Nasdaq Composite retreated from record highs due to the slump of tech stocks. Still, the long-term AI growth potential remains a strong tailwind for the sector. Important economic reports coming out next week include GDP, initial jobless claims, PCE and the core PCI index.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,053.86 | -33.24 | -0.66% |
| Dow Jones Industrial Average | 40,287.53 | -377.49 | -0.93% |
| S&P 500 | 5,505.00 | -39.59 | -0.71% |
| NASDAQ | 17,726.94 | -144.28 | -0.81% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| MRCY | 33.39 | 1.03 | 3.18% |
| PSN | 77.48 | 0.73 | 0.95% |
| KBR | 67.68 | 0.60 | 0.89% |
| ACN | 329.19 | 1.09 | 0.33% |
| ICFI | 140.51 | 0.01 | 0.01% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ACN | 329.19 | 1.09 | 0.33% |
| MRCY | 33.39 | 1.03 | 3.18% |
| PSN | 77.48 | 0.73 | 0.95% |
| KBR | 67.68 | 0.60 | 0.89% |
| ICFI | 140.51 | 0.01 | 0.01% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| TXT | 90.33 | -2.29 | -2.47% |
| VVX | 50.4 | -1.07 | -2.08% |
| GD | 288.22 | -5.05 | -1.72% |
| KTOS | 20.97 | -0.33 | -1.55% |
| HII | 263.42 | -3.79 | -1.42% |
