Executive Mosaic’s GovCon Index snapped its four-day losing run, posting a modest 0.23% gain to $5,491.84. On Wall Street, the Dow Jones Industrial Average (-0.61%) shed nearly 260 points, and the S&P 500 (-0.03%) ticked lower. The Nasdaq Composite (+0.56%) hit an all-time high ahead of big-tech earnings.
All Magnificent Seven stocks, led by Tesla’s (Nasdaq: TSLA) +3.34%, advanced to lift the tech-heavy Nasdaq. Digital Realty Trust (NYSE: DLR) rose 9.62% due to strong funds from operations growth and demand for data center services. McDonald’s (NYSE: MCD) was the worst Dow Jones performer with -2.97%.
GovCon Index Outperformers
The GovCon Index avoided a shutout, although decliners outnumbered gainers Friday, 18 to 12. Booz Allen Hamilton (NYSE: BAH) popped 9.23% to lead a dozen advancers. L3Harris Technologies (NYSE: LHX) also outperformed, rising 3.54%. BAE Systems declined 2.46%, the most significant drop among the losers.
Booz Allen Hamilton reported robust top and bottom-line growth in Q2 fiscal 2025. In the three months ended Sept. 30, 2024, revenue increased 18% to $3.15 billion compared to Q2 fiscal 2024, while net income climbed 128.5% year-over-year to $390.1 million. Because of strong operational performance, the government and military contractor raised its full-year guidance.
L3Harris Technologies saw its revenue in Q3 2024 rise 8% to $5.29 billion from a year ago. Net income increased 5.76% year-over year to $404 million, while backlog reached a record $34 billion. During the quarter, the company secured a $1.2 billion IDIQ contract with the US Navy.
Palantir Technologies (NYSE: PLTR) and L3Harris Technologies announced a strategic partnership on Thursday. The companies will collaborate to develop AI technology and push ingoing initiatives, including programs in the US Army.
Earnings Season Update
As of October 25, 2024, 37% of the S&P 500 companies have presented their most recent quarterly results. According the FactSet, eight of its 11 primary sectors are reporting year-over-year growth, topped by information technology and communication services. The earnings in the energy and industrial sectors are declining.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,491.84 | 12.54 | 0.23% |
| Dow Jones Industrial Average | 42,114.40 | -259.96 | -0.61% |
| S&P 500 | 5,808.12 | -1.74 | -0.03% |
| NASDAQ | 18,518.61 | 103.12 | 0.56% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAH | 181.93 | 15.38 | 9.23% |
| LHX | 252.81 | 8.64 | 3.54% |
| PLTR | 44.86 | 1.30 | 2.98% |
| AVAV | 220.9 | 5.24 | 2.43% |
| TXT | 82.35 | 0.86 | 1.06% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAH | 181.93 | 15.38 | 9.23% |
| LHX | 252.81 | 8.64 | 3.54% |
| AVAV | 220.9 | 5.24 | 2.43% |
| CW | 345.68 | 1.37 | 0.40% |
| PLTR | 44.86 | 1.30 | 2.98% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAESY | 66.68 | -1.68 | -2.46% |
| GIB | 113.11 | -1.17 | -1.02% |
| ACN | 360.8 | -3.43 | -0.94% |
| CACI | 547.36 | -5.19 | -0.94% |
| J | 140.52 | -1.23 | -0.87% |
