Executive Mosaic’s GovCon Index settled higher at $4,891.72 before Christmas after splitting the first two trading days of the week with a -0.30% loss and +0.45% gain. The Dow Jones Industrial Average (+0.91%), S&P 500 (+1.10%), and the Nasdaq Composite (+1.35%) advanced Tuesday, signaling the start of the Santa Claus rally.
Split win-loss
The GovCon Index ended positive despite the shortened trading hours and aided by 21 gainers. Kratos Defense & Security Solutions (Nasdaq: KTOS), Palantir Technologies (Nasdaq: PLTR), and Carlyle Group (Nasdaq: CG) were the top three performers. Aerospace and defense company V2X (NYSE: VVX) topped nine decliners. The industrial stock fell 2.15%, extending its losing streak to six days.
Published reports say Palantir Technologies and Anduril Industries plan to join forces and form a tech group to pursue Pentagon defense contracts. The consortium could include Space X and Open AI. Their goal is for the new generation of defense contractors to get a substantial share of the US defense budget of $850 million.
Traditional prime contractor Lockheed Martin (NYSE: LMT), through Lockheed Martin Aeronautics, received a $3.37 billion undefinitized modification to a previously awarded, cost-plus-fixed-fee, cost-plus-incentive-fee, fixed-price-incentive-fee, and firm-fixed-price contract from the US Navy on Monday.
Also, on Tuesday, Newport News, a business unit of ship builder HII (NYSE: HII), secured a $54 million contract involving facility upgrade requirements for the Nimitz class aircraft carrier’s defueling and inactivation and support of Ford-class aircraft carriers.
Make or break
The S&P 500 has historically recorded substantial gains during a Santa Claus rally. This year-end rally is seven days, covering the last five trading days of the year up to the first two sessions of the following year. Market analysts say the broad index’s gain on Dec. 24 was its best Christmas Eve performance in 50 years. The GovCon Index could end 2024 with positive returns if its constituents join the Santa Claus rally.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,891.72 | 22.18 | 0.45% |
| Dow Jones Industrial Average | 43,297.03 | 390.08 | 0.91% |
| S&P 500 | 6,040.04 | 65.97 | 1.10% |
| NASDAQ | 20,031.13 | 266.25 | 1.35% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KTOS | 26.66 | 0.67 | 2.58% |
| PLTR | 82.38 | 1.69 | 2.09% |
| CG | 51.18 | 1.03 | 2.05% |
| CW | 361.27 | 5.79 | 1.63% |
| HII | 192.46 | 2.05 | 1.08% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CW | 361.27 | 5.79 | 1.63% |
| NOC | 471.09 | 3.89 | 0.83% |
| ACN | 361.63 | 2.86 | 0.80% |
| HII | 192.46 | 2.05 | 1.08% |
| HON | 228.9 | 1.76 | 0.77% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 47.4 | -1.04 | -2.15% |
| ICFI | 117.59 | -1.31 | -1.10% |
| BAH | 129.7 | -1.41 | -1.08% |
| AVAV | 160.12 | -1.08 | -0.67% |
| PSN | 93.43 | -0.38 | -0.41% |
