Executive Mosaic’s GovCon Index suffered a third consecutive massive drop to close at $4,651.23 (-1.5%). However, the top three U.S. stock indexes rallied on better-than-expected producer price index and deceleration of core PPI last month. The tech-heavy Nasdaq Composite (+1.5%) led the charge on Wall Street.
Facebook parent Meta (Nasdaq: META) edged 0.44% higher and the Magnificent Seven stock established a record 19th consecutive daily gain from Jan. 17, 2025. Casino and hotel operator MGM Resorts (NYSE: MGM) surged +17.46% after reporting $17.2 billion in revenue in 2024, the best full-year consolidated net revenues in the company’s history.
Decliners Beat Gainers
The GovCon Index registered back-to-back 1.5% declines as 20 of 30 constituents posted losses. BAE Systems topped gainers with +6.54%. Defense stocks, led by Kratos Defense & Security Solutions (Nasdaq: KTOS) and Leidos (NYSE: LDOS),
tanked Thursday.
Kratos extended its losing streak to three days after Thursday’s sharp selloff. Leidos has fallen 8.59% since reporting its Q4 and fiscal year 2024 results. One reason for the downtrend of defense stocks is the prevailing uncertainty regarding budget priorities and possible disruptions in federal spending under the Trump administration.
AeroVironment (Nasdaq: AVAV) announced the establishment of FreedomWerx as part of its distributed production strategy. The site of the state-of-the-art advanced manufacturing facility is in Salt Lake City, Utah. According to the uncrewed aircraft systems manufacturer, FreedomWerx will strengthen its capacity to ensure uninterrupted delivery of precision-strike autonomous systems to government and defense partners.
Also, on Thursday, the Carlyle Group (NASDAQ: CG) announced acquiring a controlling stake in Highway Industries Limited and Roop Automotives Limited through a proprietary and exclusive transaction. The global investment firm plans to build a diversified global auto components platform by combining the Mumbai and New Delhi, India-based firms.
Reciprocal Tariffs
President Donald Trump announced reciprocal tariffs against other countries and said it was for fairness. However, his administration will study the rates in the coming weeks. The delay opens a window for countries to start trade negotiations.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,651.23 | -69.78 | -1.50% |
| Dow Jones Industrial Average | 44,711.43 | 342.87 | 0.77% |
| NASDAQ | 19,945.64 | 295.69 | 1.50% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAESY | 63.07 | 3.87 | 6.54% |
| CG | 51.03 | 1.08 | 2.16% |
| GIB | 122.43 | 1.78 | 1.48% |
| ICFI | 109.82 | 0.80 | 0.73% |
| PLTR | 117.91 | 0.52 | 0.44% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAESY | 63.07 | 3.87 | 6.54% |
| GIB | 122.43 | 1.78 | 1.48% |
| CG | 51.03 | 1.08 | 2.16% |
| ICFI | 109.82 | 0.80 | 0.73% |
| ACN | 389.53 | 0.70 | 0.18% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KTOS | 28.56 | -2.45 | -7.90% |
| LDOS | 130.65 | -6.20 | -4.53% |
| AVAV | 161.34 | -6.36 | -3.79% |
| CACI | 343.01 | -12.74 | -3.58% |
| SAIC | 100.22 | -3.71 | -3.57% |
