Executive Mosaic’s GovCon Index sunk -2.85% to $4,874.96, extending its losing streak to five days. However, the tech-heavy Nasdaq Composite (+2.03%) rebounded from Monday’s beating due to the challenge of Chinese startup DeepSeek in artificial intelligence. The S&P 500 (+0.92%) recovered from the selloff, while the Dow Jones Industrial Average (+0.31%) registered a third straight daily gain.
NVIDIA (Nasdaq: NVDA) lost almost $600 billion in market cap following a nearly 17% plunge to start the week. On Tuesday, the American AI king rose +8.93% to $128.99 but was not enough to reclaim its position as the world’s most valuable company. Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT) now hold the top two spots.
Major Blow
GovCon Index suffered a blow as prime defense contractors, notably Lockheed Martin (NYSE: LMT), posted significant losses. AI stock Palantir Technologies (NYSE: PLTR) led 11 gainers with +6.35%. RTX (NYSE: RTX) was an exception due to an earnings beat.
RTX advanced +2.64% because of strong Q4 and full-year 2024 results. In the 12 months ending Dec. 31, 2024, net income climbed 48.3% year-over-year to $5 billion. Besides the $4.53 billion free cash flow at year-end, the total backlog reached $218 billion. Chris Calio, president and CEO of RTX, said the company has strong momentum heading into 2025 and notes the unprecedented demand for its products and services.
Lockheed Martin plunged 9.18% after reporting its Q4 2024 earnings results. In the three months ending Dec. 31, 2024, net income dropped 254% to $527 million compared to Q4 2023. Nonetheless, Jim Taiclet, chairman, president and CEO of Lockheed Martin, said 2024 was another successful and productive year, given the 5.1% sales growth versus 2023 and a record $176 billion year-end backlog.
General Dynamics (NYSE: GD) declined -2.69% ahead of its quarterly results on Wednesday. Market analysts expect the aerospace and defense company to report a 9.7% year-over-year revenue growth in Q4 2024.
Tailwinds or Headwinds
President Donald Trump said after Monday’s carnage that the DeepSeek AI shock should be a wake-up call for American tech companies. Still, market momentum in the subsequent trading sessions will depend on corporate earnings by tech giants and the rate decision of the US Federal Reserve.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,874.96 | -139.03 | -2.85% |
| Dow Jones Industrial Average | 44,850.35 | 136.77 | 0.31% |
| NASDAQ | 19,733.59 | 391.76 | 2.03% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 80.23 | 4.79 | 6.35% |
| RTX | 128.35 | 3.30 | 2.64% |
| CG | 56.95 | 1.19 | 2.13% |
| BA | 177.78 | 2.62 | 1.50% |
| ACN | 378.39 | 5.24 | 1.40% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ACN | 378.39 | 5.24 | 1.40% |
| PLTR | 80.23 | 4.79 | 6.35% |
| RTX | 128.35 | 3.30 | 2.64% |
| BA | 177.78 | 2.62 | 1.50% |
| GIB | 114.45 | 1.21 | 1.07% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LMT | 457.45 | -46.24 | -9.18% |
| CACI | 392.1 | -28.71 | -6.82% |
| PSN | 80.05 | -4.35 | -5.15% |
| BAH | 128.91 | -6.47 | -4.78% |
| LDOS | 141.49 | -6.97 | -4.69% |
