Executive Mosaic’s GovCon Index erased Friday’s gain, closing 1.25% lower at $4,806.56 to start a new week. Chip stocks lifted the Nasdaq Composite (+1.24%) on artificial intelligence optimism. The S&P 500 (+0.55%) notched a third-straight daily win, while the Dow Jones Industrial Average (-0.06%) settled below the flat line.
NVIDIA (Nasdaq: NVDA) rose 3.43% to $149.43, a new record close. The acknowledged generative-AI king is on the cusp of hitting $4 trillion in market capitalization. Microsoft’s (Nasdaq: MSFT) plan to spend $80 billion and build data centers that power AI was an added boost to the tech-heavy index.
Rocky start
After only three trading days, the GovCon Index suffered its worst decline in January. However, Kratos Defense & Security Solutions (Nasdaq: KTOS), the stellar performer among eight gainers, popped +7.46% to a 52-week high. Palantir Technologies (Nasdaq: PLTR) dropped nearly 5% following a sharp selloff.
Kratos Defense & Security Solutions received its single largest award in the company’s history. The five-year Other Transaction Agreement with the Department of Defense is for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 established by the Office of the Under Secretary of Defense for Research and Engineering Test Resource Management Center. The OTA’s total value could reach $1.45 billion if Kratos exercises all options.
Palantir Technologies, GCI’s best constituent in 2024, slumped due to an underweight rating by Morgan Stanley (NYSE: MS). Jefferies analyst Brent Thrill believes the software and data analytics firm climbed to an unsustainable valuation level during its phenomenal run. The AI stock gained +375.09% in the last 12 months.
Also, on Monday, the US Air Force awarded Boeing (NYSE: BA) a ceiling $615.7 million fixed-price incentive (firm-target), cost-plus-fixed-fee, and cost-reimbursable contract for the F-15 Eagle Passive Active Warning Survivability System full rate production.
Economic Calendar
The economic calendar for the first whole week of January is heavy, mainly focused on employment. Labor market reports include JOLTS job openings in November, US employment and hourly wages in December, and initial jobless claims in the week of Jan. 4.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,806.56 | -59.87 | -1.25% |
| Dow Jones Industrial Average | 42,706.56 | -25.57 | -0.06% |
| NASDAQ | 19,864.98 | 243.30 | 1.24% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KTOS | 29.53 | 2.05 | 7.46% |
| AVAV | 163.73 | 2.72 | 1.69% |
| CG | 52.7 | 0.87 | 1.68% |
| FLR | 51.68 | 0.68 | 1.33% |
| LDOS | 148.24 | 1.09 | 0.74% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 163.73 | 2.72 | 1.69% |
| KTOS | 29.53 | 2.05 | 7.46% |
| CW | 351.23 | 1.81 | 0.52% |
| LDOS | 148.24 | 1.09 | 0.74% |
| BA | 170.78 | 0.88 | 0.52% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 75.92 | -3.97 | -4.97% |
| LMT | 466 | -15.82 | -3.28% |
| ICFI | 115.35 | -3.47 | -2.92% |
| NOC | 455.14 | -12.68 | -2.71% |
| VVX | 46.92 | -1.28 | -2.66% |
