Executive Mosaic’s GovCon Index declined -1.59% to $4,721.01 for its lowest close in 2025. The Dow Jones Industrial Average (-0.50%) and S&P 500 (-0.27%) turned red, while the Nasdaq Composite (+0.03%) barely survived the negative sentiment caused by the latest inflation data.
Only consumer staples and communications services of the 11 S&P 500 primary sectors advanced midweek. The 10-year Treasury yield rose to 4.63% in reaction to the hotter-than-expected January inflation. CVS Health (NYSE: CVS) popped +14.95% after reporting a 4.2% year-over-year revenue increase in Q4 2024 and better-than-expected $1.19 adjusted earnings per share.
Losses widened
The GovCon Index widened its year-to-date loss to -2.4% as 27 of 30 constituents fell into negative territory. Palantir Technologies (Nasdaq: PLTR), Boeing (NYSE: BA) and Carlyle Group (Nasdaq: CG) were the only gainers. AeroVironment (Nasdaq: AVAV) and ICF (Nasdaq: ICFI) fell -6.5% and -5.21%, while 12 other stocks lost more than 2%.
Boeing advanced +3.22% on news that its aircraft deliveries last month reached 45 compared to 25 planes for rival Airbus. According to the American aircraft manufacturer, it was the busiest January for deliveries since 2019. However, production and backlog concerns remain. Boeing has a massive backlog of 5,554 planes.
AeroVironment continues to spike and dip. The defense stock has fallen 9.9% to $167.70 since rising to an all-time high of $186.12 on Feb. 4, 2025. The manufacturer of uncrewed aircraft systems, unmanned aerial vehicles and loitering munition systems will present its Q3 fiscal 2025 results on March 3, 2025.
Carlyle snapped its three-day losing streak aided by the reported revenue growth and profit in 2024. In the 12 months ending Dec. 31, 2024, total revenues increased 83% year-over-year to $5.4 billion, while net income was $1.1 billion compared to the $496.7 million net loss in 2023. Harvey Schwartz, CEO of Carlyle, expects high activity across the company’s platform in 2025.
Core inflation accelerates
On Wednesday, the inflation report released by the Bureau of Labor Statistics showed that the consumer price index rose to 3% in January, and core inflation, minus food and energy prices, accelerated to 3.3% from 3.2% in December. Because inflation has picked up and a tariff war looms, further rate cuts by the U.S. Federal Reserve will have to wait.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,721.01 | -74.97 | -1.59% |
| NASDAQ | 19,649.95 | 6.09 | 0.03% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 117.39 | 4.77 | 4.24% |
| BA | 186.25 | 5.81 | 3.22% |
| CG | 49.95 | 0.37 | 0.75% |
| GIB | 120.65 | -0.13 | -0.11% |
| ACN | 388.83 | -1.18 | -0.30% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BA | 186.25 | 5.81 | 3.22% |
| PLTR | 117.39 | 4.77 | 4.24% |
| CG | 49.95 | 0.37 | 0.75% |
| GIB | 120.65 | -0.13 | -0.11% |
| MMS | 67.17 | -0.59 | -0.87% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 167.7 | -11.65 | -6.50% |
| ICFI | 109.02 | -5.99 | -5.21% |
| VVX | 47.47 | -1.65 | -3.36% |
| KTOS | 31.01 | -1.06 | -3.31% |
| FLR | 46.36 | -1.50 | -3.13% |
