Executive Mosaic’s GovCon Index fell -1.19% to $4,817.80 for its sixth consecutive daily loss since posting its best day performance on Jan. 21, 2025. The Dow Jones Industrial Average (-0.31%), S&P 500 (-0.47%) and Nasdaq Composite (-0.51%) turned red after the U.S. Federal Reserve paused its rate-cutting cycle.
More than 50% of NYSE stocks and Nasdaq components declined following the central bank’s decision to hold interest rates steady in the 4.25%-4.50% range. However, coffee chain Starbucks (Nasdaq: SBUX) and wireless carrier T-Mobile US (Nasdaq: TMUS) rose +8.14% and +6.34% on better-than-expected Q4 2024 results.
Beating Continues
The GovCon Index has erased all gains this month and is now down -0.41% year-to-date. Defense stocks continue to get the worst beating. Fluor Corporation (NYSE: FLR) topped five advancers with +3.32%, while BAE Systems and General Dynamics (NYSE: GD) led 25 decliners.
General Dynamics plunged -4.24% despite reporting double-digit revenue and earnings growth. In Q4 2024, revenue and net earnings increased 14.3% and 14.2% year-over-year to $13.34 billion and $1.15 billion. For the full-year, the top and bottom lines rose 12.9% and 14.1% to $47.72 billion and $3.78 billion compared to 2023. The total backlog at year-end is $90.6 billion.
Another decliner (-2.84%) that showed impressive quarterly results was Tetra Tech (Nasdaq: TTEK). In the three months ending Dec. 29, 2025, revenue and backlog climbed 16% and 15% to $1.42 billion and $5.44 billion versus Q1 fiscal 2024. “Tetra Tech began fiscal 2025 with a strong first quarter, which included all-time record high quarterly revenue and backlog, and record high first-quarter adjusted operating income and EPS,” said Dan Batrack, chairman and CEO of Tetra Tech.
The U.S. Air Force awarded L3Harris Technologies (NYSE: LHX) an $89.9 million cost-plus-fixed-fee, cost delivery order for the Advanced Tracking and Launch Analysis System, including a base plus two option periods. On Tuesday, the US Army awarded the company full-rate Manpack and Leader radio production orders under the Handheld, Manpack & Small Form Fit program worth around $300 million.
No Hurry
US President Donald Trump expressed disappointment at the Feds’ decision to stall rate cuts. However, Fed chairman Jerome Powell said, “We don’t need to be in a hurry to adjust our policy stance.” He added that the economy is “in quite a good place,” evidenced by the growing GDP, solid job gains, low unemployment rate and easing inflationary pressures.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,817.80 | -57.16 | -1.19% |
| Dow Jones Industrial Average | 44,713.52 | -136.83 | -0.31% |
| NASDAQ | 19,632.32 | -101.27 | -0.51% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| FLR | 48.1 | 1.56 | 3.35% |
| SAIC | 106.62 | 0.73 | 0.69% |
| HON | 221.05 | 0.35 | 0.16% |
| CW | 338.43 | 0.41 | 0.12% |
| GIB | 114.54 | 0.09 | 0.08% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| FLR | 48.1 | 1.56 | 3.35% |
| SAIC | 106.62 | 0.73 | 0.69% |
| CW | 338.43 | 0.41 | 0.12% |
| HON | 221.05 | 0.35 | 0.16% |
| GIB | 114.54 | 0.09 | 0.08% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAESY | 59.55 | -2.70 | -4.34% |
| GD | 251.45 | -11.12 | -4.24% |
| MRCY | 39.67 | -1.55 | -3.76% |
| TTEK | 37.67 | -1.10 | -2.84% |
| RTX | 125.13 | -3.22 | -2.51% |
