Executive Mosaic’s GovCon Index finished strong at the start of a new week, rising +1.56% to $4,907.37. The Dow Jones Industrial Average (+0.86%) and S&P 500 (+0.16%) gained ground, while the tech-heavy Nasdaq Composite (-0.38%) remained in negative territory.
Magnificent Seven stocks, except for Tesla (Nasdaq: TSLA), retreated along with chipmakers. Energy was the top gainer among 11 S&P 500 primary sectors, boosted by the rise in crude oil prices to a four-month high. CVS Health (NYSE: CVS) and healthcare stocks with managed care plans advanced on news of the government’s proposal to increase Medicare Advantage reimbursement rates.
Defense Stocks Rebound
Defense stocks powered the GovCon Index to its third straight daily gain. Kratos Defense & Security Solutions (Nasdaq: KTOS) outperformed with +5.18% and rose to a 52-week high of $31.19 in intra-day trading before settling at $30.89, a new closing high. Prime defense contractors Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC) were among the 23 gainers. AI favorite Palantir Technologies (TSX: PLTR), the worst performer in four of the last five trading sessions, led seven decliners.
Kratos Defense & Security Solutions announced winning a hypersonic system program award with a potential value of around $100 million. The tech company catering to defense, national security and other clients in global markets has received $15 million in initial funding, which should increase in the second half of 2025.
The US Department of Homeland Security Center for Countering Human Trafficking, or CCHT, awarded ICF (Nasdaq: ICFI) a new $40 million contract for up to five years. Under the contract, the global consulting and technology services provider will deliver strategic and digital communications and engagement campaigns against human trafficking.
Also, on Monday, BP International Limited, a part of British Petroleum, awarded KBR (NYSE: KBR) a global agreement for engineering, procurement and construction management, or EPCM services. KBR will provide EPCM for onshore, offshore, greenfield and brownfield conventional energy projects and new energy sector projects globally for three years.
New Earnings Season
Besides the latest inflation-related reports like the consumer price index and core CPI, the Q4 2024 earnings season will commence this week. The big banks will report first on Wednesday, a departure from the customary Friday. FactSet predicts that the financial sector will report the highest year-over-year earnings growth rate in the fourth quarter among all S&P 50 primary sectors.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,907.37 | 76.51 | 1.56% |
| Dow Jones Industrial Average | 42,297.12 | 358.67 | 0.86% |
| NASDAQ | 19,088.10 | -73.53 | -0.38% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KTOS | 30.89 | 1.52 | 5.18% |
| ICFI | 124.97 | 4.86 | 4.05% |
| CACI | 446.06 | 14.82 | 3.44% |
| LMT | 483.16 | 15.11 | 3.23% |
| NOC | 472.38 | 13.69 | 2.98% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LMT | 483.16 | 15.11 | 3.23% |
| CACI | 446.06 | 14.82 | 3.44% |
| NOC | 472.38 | 13.69 | 2.98% |
| LHX | 213.92 | 5.64 | 2.71% |
| HII | 195.14 | 5.12 | 2.69% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 64.98 | -2.28 | -3.39% |
| AVAV | 162.11 | -2.92 | -1.77% |
| BAESY | 57.86 | -0.60 | -1.03% |
| BA | 170.57 | -1.43 | -0.83% |
| MRCY | 41.75 | -0.15 | -0.36% |
