Executive Mosaic’s GovCon Index inched higher on New Year’s Eve, settling at $4,837.85 (+0.13%). However, it was the worst monthly performance (-7.03%), following only eight daily gains in 21 trading days. Nonetheless, the index representing the government contracting sector ended 2024 with a +3.63% return. All major US indexes ended negative on Tuesday.
Wall Street’s Santa Claus rally fizzled in the last two sessions of December, but it was a blockbuster year overall. The tech-heavy Nasdaq Composite and the broad S&P 500 Index were up +28.6% and +23.3% for the year. While it was also a disappointing month (-5.27%) for the Dow Jones Industrial Average, the blue-chip index gained +12.9% year-over-year.
Massive downturn
The GovCon Index squeezed a yearly gain despite monthly losses from Sept. to Dec. 2024. Its worst weekly performance was from Nov. 11 to 15, when uncertainties about potential policy changes in the government contracting industry surfaced post-election. The index lost 8.52% for the week.
After a week-on-week gain in the week ending Nov. 22, five consecutive weekly losses ensued, leading to Dec. 30 and 31. Still, individually, 24 GCI constituents ended with positive returns. Palantir Technologies (Nasdaq: PLTR) was the best performer, with +340.48% for the year.
Curtiss-Wright (NYSE: CW) and Parsons (NYSE: PSN) were second and third with +59.73% and +47.11%, respectively. Boeing (NYSE: BA) and HII (NYSE: HII) declined -32.1% and -25.67% to lead six underperformers.
Best and Worst
Palantir Technologies was a hot item for most of the year. There is high demand for its artificial intelligence platform from the federal government. On Dec. 18, the software and data analytics firm secured a $400.7 million contract extension with the U.S. Army. The total value of the four-year contract could reach $618.9 million.
The ever-increasing need for AI-enabled products in the federal government is a tailwind for Palantir Technologies. Talks with other tech companies to form a consortium to bid on US government contracts are underway.
Boeing is also the Dow Jones’ worst performer in 2024, although December was its best month in 2024. The aerospace and defense stock rose +13.87% month-on-month. Unfortunately, a Boeing 737-800 aircraft of Jeju Air crashed at the Muan International Airport in South Korea on Dec. 29. An investigation of the airline disaster is ongoing.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,837.85 | 6.30 | 0.13% |
| Dow Jones Industrial Average | 42,544.22 | -29.51 | -0.07% |
| S&P 500 | 5,881.63 | -25.31 | -0.43% |
| NASDAQ | 19,310.79 | -176.00 | -0.90% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KBR | 57.93 | 0.63 | 1.10% |
| ICFI | 119.21 | 1.12 | 0.95% |
| SAIC | 111.78 | 0.97 | 0.88% |
| LHX | 210.28 | 1.34 | 0.64% |
| LDOS | 144.06 | 0.89 | 0.62% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 469.29 | 2.77 | 0.59% |
| LMT | 485.94 | 2.57 | 0.53% |
| CACI | 404.06 | 1.83 | 0.45% |
| LHX | 210.28 | 1.34 | 0.64% |
| ICFI | 119.21 | 1.12 | 0.95% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 75.63 | -1.55 | -2.01% |
| AVAV | 153.89 | -1.29 | -0.83% |
| CW | 354.87 | -2.89 | -0.81% |
| VVX | 47.83 | -0.38 | -0.79% |
| KTOS | 26.38 | -0.14 | -0.53% |
