Executive Mosaic’s GovCon Index declined 0.76% to $5,164.39 for a lackluster start in December. The Dow Jones Industrial Average (-0.29%) slipped Monday, while the Nasdaq Composite (+0.97%) and S&P 500 (+0.24%) raced to new record highs. Adobe Analytics reported that shoppers spent a record $6.1 billion on Black Friday, of which $3.6 billion were online sales.
Super Micro Computer (Nasdaq: SMCI) soared +28.68% on news that independent investigators found no evidence the management or board of the server manufacturer committed financial misconduct. Also, all Magnificent Seven stocks posted gains to lift the tech-heavy index.
Decliners Outnumber Gainers
The GovCon Index failed to sustain Friday’s gain as 21 stocks underperformed. Mercury Systems (Nasdaq: MRCY), General Dynamics (NYSE: GD), and two other GCI constituents fell more than 2%. AeroVironment (Nasdaq: AVAV) gained 4.47% to lead nine gainers.
AeroVironment, the second top-performing GCI stock, is now up 61.21% year-to-date. The proposed $4.1 billion acquisition of BlueHalo is a key win for the aerial systems and defense equipment provider. AeroVironment said acquiring the defense technology firm will enable the development of next-generation technologies.
Business Development and Defense Contracts
British defense company BAE Systems completed environmental testing of NASA’s Spectro-Photometer for the History of the Universe, Epoch of Reionization and Ices Explorer, or SPHEREx Observatory. Besides all-sky spectral surveys, the mission will provide new insights into universe and galaxy formations.
Lockheed Martin (NYSE: LMT) signed an agreement with Romania-based Sinteza to deploy its GridSter Flow technology and produce negative electrolytes. The project aims to establish Romania as a leader in Europe’s battery storage sector. The US State Department has approved the potential sale of equipment and follow-on support for MH-60R Seahawk helicopters to India worth $1.17 billion. Lockheed Martin is the principal contractor.
Also, on Monday, the US Navy awarded Raytheon Technologies, an RTX (NYSE: RTX) business, a not-to-exceed $1.3 billion cost-plus-incentive-fee, cost-plus-fixed-fee, fixed-price-incentive-fee modification to a previously awarded contract relating to all fielded F135 propulsion systems.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,164.39 | -39.21 | -0.76% |
| NASDAQ | 19,403.95 | 185.78 | 0.97% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 203.19 | 8.69 | 4.47% |
| BAESY | 63.43 | 0.99 | 1.59% |
| BA | 156.54 | 1.10 | 0.71% |
| TTEK | 41.77 | 0.26 | 0.63% |
| KBR | 61.07 | 0.24 | 0.39% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 203.19 | 8.69 | 4.47% |
| BA | 156.54 | 1.10 | 0.71% |
| BAESY | 63.43 | 0.99 | 1.59% |
| BAH | 148.72 | 0.54 | 0.36% |
| TTEK | 41.77 | 0.26 | 0.63% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| MRCY | 40.01 | -1.12 | -2.72% |
| GD | 276.44 | -7.57 | -2.67% |
| RTX | 118.68 | -3.15 | -2.59% |
| ICFI | 135.15 | -3.42 | -2.47% |
| FLR | 55.11 | -1.02 | -1.82% |
