Executive Mosaic’s GovCon Index bucked the tech slump, gaining 1.51% to a new record close of $5,183.86. The Nasdaq Composite (-0.93%) and S&P 500 (-0.51%) extended their losses, while the Dow Jones Industrial Average (+0.20%) inched higher. AI stocks are trending down ahead of critical inflation data due Friday.
The tech-heavy Nasdaq had momentum in early trading but the chip stocks’ comeback faltered eventually, led by the 4.36% drop of Advanced Micro Devices (Nasdaq: AMD). Ford Motor (NYSE: F) tumbled 18.36% after reporting a 5.56% year-over-year decline in Q2 2024 net income to $1.8 billion. The auto manufacturer said higher warranty reserves affected profitability.
The GovCon Index recovered from its steep loss mid-week as 22 stocks finished in positive territory. RTX (NYSE: RTX) shone brightest among the winning bunch, popping 8.24% to $113.47. Northrop Grumman (NYSE: NOC) was second-best with +6.43%. Honeywell International (Nasdaq: HON), the worst performer, fell 5.24%.
RTX, an aerospace and defense contractor, presented its financial results and operational performance for the second quarter of 2024. Total sales rose 8% to $19.7 billion compared to Q2 2023, although net income dropped 92% year-over-year to $111 million. However, operating cash flow and free cash flow soared 280% and 1,038% to $2.7 billion and $2.2 billion, respectively, from a year ago.
In the three months ending June 30, 2024, Northrop Grumman reported sales growth in every business segment. Because of strong demand across the portfolio, total sales and net earnings increased 6.7% and 13.62% year-over-year to $10.2 billion and $940 million. Management also announced a 10% dividend hike while emphasizing the focus on competitive, sustainable growth.
Meanwhile, Honeywell sunk on management’s lower full-year profit guidance. The multinational conglomerate and engineering firm saw its revenue and net earnings in Q2 2024 rise 4.7% and nearly 4% to $9.58 billion and $1.56 billion. Vimal Kapur, CEO of Honeywell, expects the Aerospace Technologies segment to lead growth.
Also, on Thursday, the latest GDP report from the Commerce Department showed that the U.S. economy grew by 2.8% against the 1.9% consensus estimates. According to analysts, the healthy growth indicates the economy does not need immediate monetary support from the Feds.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,183.86 | 78.28 | 1.51% |
| Dow Jones Industrial Average | 39,935.07 | 81.20 | 0.20% |
| S&P 500 | 5,399.22 | -27.91 | -0.51% |
| NASDAQ | 17,181.72 | -160.69 | -0.93% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| RTX | 113.47 | 8.64 | 8.24% |
| NOC | 470.57 | 28.45 | 6.43% |
| CG | 46.33 | 1.59 | 3.55% |
| HII | 273.95 | 8.65 | 3.26% |
| LHX | 243.27 | 6.12 | 2.58% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 470.57 | 28.45 | 6.43% |
| HII | 273.95 | 8.65 | 3.26% |
| RTX | 113.47 | 8.64 | 8.24% |
| GD | 290.98 | 6.31 | 2.22% |
| LMT | 521.4 | 6.20 | 1.20% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| HON | 202.45 | -11.20 | -5.24% |
| BAESY | 63.97 | -0.83 | -1.28% |
| MRCY | 34.55 | -0.20 | -0.58% |
| BAH | 153.58 | -0.51 | -0.33% |
| AVAV | 169.94 | -0.37 | -0.22% |
