Executive Mosaic’s GovCon Index turned positive Monday, following a 1.26% gain to $5,010.83. The tech-heavy Nasdaq Composite (+1.24%) closed at a new record high of 20,173.89, while the broad S&P 500 Index (+0.38%) settled higher. However, the blue-chip Dow Jones Industrial Average (-0.25%) recorded its eighth straight losing day.
The day’s pace-setters, consumer discretionary, communications services, and technology sectors, advanced more than 1%. Semiconductor maker Broadcom (Nasdaq: AVGO), the newest $1 trillion club member, was among the market movers with +11.21%. Super Micro Computer (Nasdaq: SMCI) tanked 8.26% due to its impending removal from the Nasdaq 100 Index.
Defense Stocks Shine
The GovCon Index averted a third consecutive poor weekly start in December. Defense stocks came to life with solid gains. AeroVironment (Nasdaq: AVAV), last week’s worst performer, popped +7.86 to lead 22 gainers. Other notable advancers include Kratos Defense & Security Solutions (Nasdaq: KTOS) and Curtiss-Wright (NYSE: CW). CGI (NYSE: GIB) topped eight losers with -2.13%.
Curtiss-Wright, a provider of advanced technologies to defense, commercial, energy, and industrial markets, announced a $100 million expansion of its repurchase program, raising the total share repurchases in 2024 to $250 million. Lynn M. Bamford, chairman and CEO of Curtiss-Wright, said the increase is a share buyback commitment made possible by a healthy balance sheet.
Honeywell (Nasdaq: HON) rose +3.68% on news the Dow Jones constituent is considering transformational changes, including the spin-off of its aerospace business. The board of directors has been exploring strategic options and might follow other conglomerates that separated their businesses.
Also, on Monday, the US Navy awarded Lockheed Martin (NYSE: LMT) a $33.8 million definitization contract modification to delivery order under a previously awarded basic ordering agreement relating to procuring test controller processors and infrared receivers for the F/A-18 aircraft.
A Third Cut is Coming
The two-day meeting of the Federal Open Market Committee, the last for the year, begins on Tuesday and ends Wednesday. Fed Chairman Jerome Powell will announce the rate decision at the press conference after the FOMC meeting. Wall Street economists expect a 0.25% rate cut despite a sticky inflation.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,010.83 | 63.16 | 1.26% |
| Dow Jones Industrial Average | 43,717.48 | -110.58 | -0.25% |
| NASDAQ | 20,173.89 | 247.17 | 1.24% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 168.8 | 12.30 | 7.86% |
| KTOS | 28.29 | 1.45 | 5.40% |
| CW | 385.02 | 18.10 | 4.93% |
| MRCY | 39.33 | 1.46 | 3.86% |
| HON | 236 | 8.38 | 3.68% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CW | 385.02 | 18.10 | 4.93% |
| AVAV | 168.8 | 12.30 | 7.86% |
| HON | 236 | 8.38 | 3.68% |
| CACI | 416.95 | 7.04 | 1.72% |
| HII | 198.27 | 6.13 | 3.19% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| GIB | 110.21 | -2.40 | -2.13% |
| TTEK | 41.54 | -0.50 | -1.19% |
| LMT | 491.65 | -3.00 | -0.61% |
| LHX | 222.04 | -1.12 | -0.50% |
| ACN | 357.06 | -1.62 | -0.45% |
