Executive Mosaic’s GovCon Index rose +0.58% to $4,895.91, powered by a resurging AI stock and a pair of technology companies catering to the military sector. Wall Street regained ground as tech titans lifted the Nasdaq Composite (+1.35%) and the broad S&P 500 Index (+0.72%). The blue-chip Dow Jones Industrial Average (+0.30%) closed higher.
Breakout Stocks
Gainers edged losers on the GovCon Index, 16 to 14, led by Palantir Technologies (Nasdaq: PLTR). AeroVironment (Nasdaq: AVAV) and Kratos Defense & Security Solutions (Nasdaq: KTOS) popped +7.6% and +3.55%, respectively. However, Carlyle Group (Nasdaq: CG) and Jacobs (NYSE: J) declined more than 3.4% on the losing side.
Palantir gained +23.99% due to a record-breaking quarter. In Q4 and full-year 2024, revenue grew 36% and 29% year-over-year to $827.5 million and $2.86 billion. Ryan Taylor, Palantir’s chief revenue officer and legal officer, said artificial intelligence is pivotal to the company’s accelerated momentum. The AI stock posted a new 52-week high of $106.91 then finished at $103.83, a new all-time high.
AeroVironment advanced for the second straight day following the new $288 million delivery order for its Switchblade loitering munition systems. The order, announced on Monday, is the third under the $990 million contract with the U.S. Army and is the largest award ever for the drone specialist.
Kratos will present its Q4 2024 financial results on Feb. 11, 2025. On Tuesday, research analysts at JMP Securities raised the target price to $40 to go with their “market outperform” rating. As of Feb. 4, 2025, KTOS trades at $34.38 per share.
Jacobs declined after reporting a net loss of $17.1 million in Q1 fiscal 2025 compared to the $128.3 million net earnings in Q1 fiscal 2024. However, the backlog rose 18.9% to $21.8 billion from a year ago. The technical professional services firm continues to see tailwinds from robust bookings and a healthy pipeline in its end markets.
Tariff War
Momentum returned as more than 65% of NYSE stocks and Nasdaq constituents advanced Tuesday amid the start of a tariff war. U.S. President Donald Trump’s 10% tariffs on Chinese imports took effect while China’s Ministry of Finance announced retaliatory tariffs on select American products and new export controls.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,895.91 | 28.24 | 0.58% |
| NASDAQ | 19,654.02 | 262.06 | 1.35% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 103.83 | 20.09 | 23.99% |
| AVAV | 186.12 | 13.14 | 7.60% |
| KTOS | 34.38 | 1.18 | 3.55% |
| BAH | 131.97 | 2.56 | 1.98% |
| ACN | 391.62 | 6.41 | 1.66% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 103.83 | 20.09 | 23.99% |
| AVAV | 186.12 | 13.14 | 7.60% |
| ACN | 391.62 | 6.41 | 1.66% |
| BAH | 131.97 | 2.56 | 1.98% |
| CACI | 386.36 | 1.63 | 0.42% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CG | 52.18 | -2.00 | -3.69% |
| J | 133.99 | -4.79 | -3.45% |
| BAESY | 60.39 | -1.11 | -1.80% |
| RTX | 128.37 | -1.55 | -1.19% |
| NOC | 482.39 | -5.36 | -1.10% |
