Executive Mosaic’s GovCon Index closed lower at $4,795.98 (-0.93%) after failing to sustain Monday’s gains. Wall Street ended mixed as more countries reacted to U.S. President Donald Trump’s generalized tariffs on steel and aluminum. The Dow Jones Industrial Average (+0.28%) and S&P 500 (+0.03%) edged higher, while the tech-heavy Nasdaq Composite (-0.36%) slipped.
GCI Flashes Red
The GovCon Index suffered another blow as decliners overwhelmed gainers following this week’s strong start. Fluor Corporation (NYSE: FLR) and CACI International (NYSE: CACI) declined more than 4%, leading 22 losers. All advancers, except BAE Systems’ +2.79%, had modest gains.
Monday’s top four performers, including Palantir Technologies (Nasdaq: PLTR) posted losses. Leidos (NYSE: LDOS) declined -3.62% despite reporting strong Q4 and fiscal 2024 earnings.
Tom Bell, CEO of Leidos, said, “2024 was a fantastic year for Leidos, as we delivered robust results at or above the high end of our guidance range across all metrics.” In the three months and 12 months ending Jan. 3, 2025, net income increased 22.6% and 501.4% year-over-year to $282 million and $1.25 billion.
The U.S. Navy awarded Lockheed Martin Rotary and Mission Systems, a business segment of Lockheed Martin (NYSE: LMT), a $114.2 million cost-plus-incentive-fee modification to a previously awarded contract to exercise options for the Navy’s procurement of hardware to support sound navigation and ranging systems.
General Dynamics Information Technology announced a partnership with IonQ (NYSE: IONQ) late Monday. The business unit of General Dynamics (NYSE: GD) and the quantum computing company will co-develop and market advanced quantum processing and networking applications. GDIT and IonQ will also bring the power of computing to the government and defense sectors.
EU Countermeasures
According to President Donald Trump, the announced tariffs on two metals and finished metal products will take effect on March 12, 2025, and apply to all countries with “no exemptions, no exceptions.” On Tuesday, the European Union pledged to respond with countermeasures. EU chief Ursula von der Leyen said, “The EU will act to safeguard its economic interests.” She called the tariffs unjustified.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,795.98 | -44.84 | -0.93% |
| Dow Jones Industrial Average | 44,593.65 | 123.24 | 0.28% |
| NASDAQ | 19,643.86 | -70.41 | -0.36% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAESY | 60.1 | 1.63 | 2.79% |
| ACN | 390.01 | 3.12 | 0.81% |
| RTX | 129.11 | 0.86 | 0.67% |
| LMT | 449.36 | 1.14 | 0.25% |
| GD | 256.99 | 0.65 | 0.25% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ACN | 390.01 | 3.12 | 0.81% |
| BAESY | 60.1 | 1.63 | 2.79% |
| LMT | 449.36 | 1.14 | 0.25% |
| RTX | 129.11 | 0.86 | 0.67% |
| GD | 256.99 | 0.65 | 0.25% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| FLR | 47.86 | -2.28 | -4.55% |
| CACI | 364.92 | -17.18 | -4.50% |
| CG | 49.58 | -1.90 | -3.69% |
| LDOS | 137.6 | -5.17 | -3.62% |
| PLTR | 112.62 | -4.03 | -3.45% |
