Executive Mosaic’s GovCon Index ended higher before the weekend at $4,866.43 (+0.97%) but still lost 0.23% for the week. Wall Street’s major stock benchmarks surged on the last day of the supposedly Santa Claus rally. The Nasdaq Composite (+1.77%), S&P 500 (+1.26%), and Dow Jones Industrial Average (+0.80%) arrested their three-day skids.
Momentum returned as tech stocks recovered from their post-Christmas slump. More than 70% of NYSE stocks and Nasdaq components advanced Friday. Super Market movers Micro Computer (Nasdaq: SMCI) and Tesla (Nasdaq: TSLA) popped +10.92% and +8.22%, respectively.
Late Rally
The GovCon Index had 24 outperformers compared to six decliners. However, despite the nearly 1% gain, the index registered its sixth straight weekly loss since the last week of Nov. 2024. Palantir Technologies (Nasdaq: PLTR), the top performer, advanced +6.25%, followed by Kratos Defense & Security Solutions (Nasdaq: KTOS) with +4.17%. Boeing (NYSE: BA) skidded for the second straight day.
On Friday, rebuilding Boeing released an updated safety and quality plan targeting four key areas. Besides focusing on safety and quality culture and eliminating defects, the plane maker will enhance workforce training and streamline operational procedures. Mike Whitaker, outgoing chief of the Federal Aviation Administration chief, said Boeing needs a cultural shift to put safety above profits.
Curtiss-Wright (NYSE: CW), the second-best GCI performer in 2024 after Palantir Technologies, made a strategic acquisition to strengthen its aerospace and defense industry footprint. The company announced a $200 million cash acquisition of Ultra Energy, an engineering company and manufacturer of measurement and control solutions for extreme environments.
Rate Expectations
The US Federal Reserve’s fight against inflation and the rate-cutting cycle isn’t over, although policymakers see fewer cuts in 2025. Also, a new administration will be in place when the Federal Open Market Committee holds its first meeting this year on Jan. 29.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,866.43 | 47.34 | 0.97% |
| Dow Jones Industrial Average | 42,732.13 | 339.86 | 0.80% |
| S&P 500 | 5,942.47 | 73.92 | 1.26% |
| NASDAQ | 19,621.68 | 340.89 | 1.77% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 79.89 | 4.70 | 6.25% |
| KTOS | 27.48 | 1.10 | 4.17% |
| FLR | 51 | 1.73 | 3.51% |
| BAH | 131.93 | 3.81 | 2.97% |
| AVAV | 161.01 | 4.56 | 2.91% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CACI | 420.14 | 9.18 | 2.23% |
| ACN | 353.85 | 5.03 | 1.44% |
| PLTR | 79.89 | 4.70 | 6.25% |
| AVAV | 161.01 | 4.56 | 2.91% |
| LDOS | 147.15 | 3.85 | 2.69% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BA | 169.9 | -1.97 | -1.15% |
| CW | 349.42 | -1.93 | -0.55% |
| RTX | 115.87 | -0.14 | -0.12% |
| LMT | 481.82 | -0.43 | -0.09% |
| TXT | 75.73 | -0.06 | -0.08% |
