Executive Mosaic’s GovCon Index finished strong for the second straight day, rising 1.39% to $5,183.03, a new record close. Wall Street turned red on mild losses by the Dow Jones Industrial Average (-0.14%), S&P 500 (-0.16%), and the Nasdaq Composite (-0.06%). All three major indexes paused their record runs, although momentum remains as more than 50% of NYSE and Nasdaq stocks advanced Tuesday.
Music streaming service provider Spotify (NYSE: SPOT) and water treatment firm Pentair (NYSE: PNR) rose 11.96% and 9% due to better-than-expected earnings and higher sales, respectively. Package delivery company United Parcel Services (NYSE: UPS) plunged 12.05% after reporting lower sales and profits as well as tempered full-year revenue guidance.
The GovCon Index saw 27 constituents post positive gains, with top performers Lockheed Martin (NYSE: LMT) and Kratos Defense & Security Solutions (Nasdaq: KTOS) advancing more than 5%. Boeing (NYSE: BA), the third-best gainer, rose 4.24%. BAE Systems and Accenture (NYSE: ACN) ticked lower, while CGI (NYSE: GIB) was flat.
Defense earnings kicked off, and Lockheed rose above the buy zone, according to market analysts. For Q2 2024, the security and aerospace company reported a 9% year-over-year increase in net sales to $18.1 billion and raised its full-year financial outlook. Free cash flow rose 95.33% to $1.5 billion compared to Q2 2023.
Kratos Turbine Technologies, a division of Kratos Defense & Security Solutions, and GE Aerospace (NYSE: GE) signed a Memorandum of Understanding to develop and produce small, affordable engines jointly. The new partners said the engines could power unmanned aerial systems, collaborative combat aircraft, and similar applications.
Boeing announced that it has resumed deliveries of 737 MAX aircraft to China. Also, on Tuesday, the American plane maker secured deals with Qatar Airways and Macquarie Airfinance at the Farnborough Airshow in England.
The U.S. Navy awarded a business unit of KBR (NYSE: KBR) a $153.6 million cost-plus-fixed-fee, cost-reimbursable, indefinite-delivery/indefinite-quantity contract. This contract provides for certified and qualified operational contractor support services aircrew. It supports mission-essential testing and evaluation of manned air vehicles of the Naval Test Wing Atlantic and Pacific squadrons.
Thus far, the second-quarter earnings season results have beaten expectations. More defense contractors and mega-cap tech firms will report this week. Meanwhile, investors await important inflation data due Friday that could influence the Fed’s policy decision on rate cuts.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 5,183.03 | 72.01 | 1.39% |
| Dow Jones Industrial Average | 40,358.09 | -57.35 | -0.14% |
| S&P 500 | 5,555.74 | -8.67 | -0.16% |
| NASDAQ | 17,997.35 | -10.22 | -0.06% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LMT | 501.29 | 26.70 | 5.63% |
| KTOS | 22.54 | 1.14 | 5.33% |
| BA | 186.48 | 7.58 | 4.24% |
| MRCY | 35.17 | 1.02 | 2.99% |
| AVAV | 171.52 | 3.10 | 1.84% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LMT | 501.29 | 26.70 | 5.63% |
| BA | 186.48 | 7.58 | 4.24% |
| CACI | 459.32 | 7.08 | 1.57% |
| NOC | 442.3 | 4.20 | 0.96% |
| GD | 294.46 | 3.25 | 1.12% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| BAESY | 65.77 | -0.64 | -0.96% |
| ACN | 330.33 | -1.18 | -0.36% |
| VVX | 52.7 | 0.04 | 0.08% |
| CG | 46.48 | 0.05 | 0.11% |
| TTEK | 208.67 | 0.33 | 0.16% |
