Executive Mosaic’s GovCon Index is on a roll, rising +0.50% to $4,959.35 and extending its winning streak to five days from Jan. 8. Big US banks reported better-than-expected quarterly results to kick off the new earnings season. The Nasdaq Composite (+2.45%) and S&P 500 (+1.83%) rose sharply, while the Dow Jones Industrial Average (+1.65%) added 703.27 points for its best performance since early Nov. last year.
Upbeat bank earnings and the easing of the core inflation rate in Dec. to 3.2% from 3.3% in the prior month triggered the broad market rally. However, the consumer price index rose 0.4% month-on-month to 2.9%. The Bank of New York Mellon (NYSE: BK) and Citigroup (NYSE: C) topped gainers in the financial sector with +8.03% and +6.49%, respectively.
Sustained GovCon Index Momentum
The GovCon Index had 23 gainers and seven decliners for the third straight trading session. V2X (NYSE: VVX) and Carlyle Group (NYSE: CG) were the top performers midweek, while Northrop Grumman (NYSE: NOC) and six GCI stocks posted losses.
Kratos Defense & Security Solutions (Nasdaq: KTOS) remains red-hot, rising +19% in five days and closing at a new record high of $34.05%. The defense-technology firm has established a strong position in the hypersonic systems market. The Pentagon recently awarded Kratos a $1.45 billion contract for the hypersonic testbed program.
Boeing (NYSE: BA) was also one of seven decliners on the blue-chip Dow Jones index. The plane maker reported a significant reduction in aircraft deliveries in 2024. On Wednesday, the US Navy awarded the plane maker $18,480,000 for a ceiling-priced delivery order under a previously awarded basic ordering agreement to repair R2 trailing edge flaps used on the F/A-18 E/F aircraft.
Unlikely Rate Cut in January
Market analysts say the latest CPI number released by the Commerce Department further lessens the chances of a rate cut this month. The US Feds’ inflation target is 2%, far from the 2.9% annual inflation rate. The 10-year Treasury yield fell to 4.64%, its most significant one-day drop since Aug., in reaction to the latest inflation data.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,959.35 | 24.60 | 0.50% |
| NASDAQ | 19,511.23 | 466.84 | 2.45% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 51.79 | 2.54 | 5.16% |
| CG | 53.9 | 2.08 | 4.01% |
| KTOS | 34.05 | 1.29 | 3.94% |
| PLTR | 68.14 | 2.23 | 3.38% |
| AVAV | 167.53 | 2.87 | 1.74% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CACI | 446.78 | 5.56 | 1.26% |
| AVAV | 167.53 | 2.87 | 1.74% |
| VVX | 51.79 | 2.54 | 5.16% |
| LDOS | 155.25 | 2.49 | 1.63% |
| CW | 361.84 | 2.25 | 0.63% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 472.3 | -3.20 | -0.67% |
| SAIC | 116.07 | -0.58 | -0.50% |
| BA | 166.2 | -0.82 | -0.49% |
| LHX | 214.14 | -0.75 | -0.35% |
| RTX | 119.09 | -0.38 | -0.32% |
