Executive Mosaic’s GovCon Index is back in negative territory following a -0.64% drop to $4,579.91. Wall Street turns red due to a set of headwinds. The Dow Jones Industrial Average (-1.01%) shed 450 points, while the S&P 500 (-0.43%) and Nasdaq Composite (-0.47%) retreated after two days of gains.
Dow Jones component Walmart (NYSE: WMT) influenced the downturn with -6.53% after the big-box retailer gave a weaker earnings outlook for fiscal 2026. Seven of 11 S&P 500 primary sectors, led by financials and consumer discretionary, declined Thursday. Initial jobless claims rose to 219,000 in the past week, but analysts say the number could rise further due to federal government layoffs.
Back in the red zone
Decliners outnumbered gainers on the GovCon Index. Only seven stocks advanced, topped by HII (NYSE: HII). Palantir Technologies (Nasdaq: PLTR) and Parsons (NYSE: PSN) were the worst performers for the second straight session. GCI is now down -5.33% year-to-date.
AI stock Palantir Technologies has fallen -15% since the start of the week. The potential defense spending cuts caused the sharp selloff. Approximately 55% of the data analytics firm’s revenue comes from government clients with government contracts. Parsons has lost -16% in two days despite reporting record revenue and net income in Q4 2024.
HII extended its winning streak to four days. The shipbuilder obtained a $44.95 million cost-plus-incentive-fee modification to a previously awarded contract with the U.S. Navy. This modification is for long-lead-time material to prepare for the accomplishment of the USS Harry S. Truman Refueling and Complex Overhaul.
Also, on Thursday, the U.S. Navy awarded Sikorsky Aircraft, a Lockheed Martin (NYSE: LMT) company, a not-to-exceed $232.45 million firm-fixed-price modification to a previously awarded contract. The modification exercises an option to procure additional long-lead time materials to support full-rate production of Lot 10 of the CH-53K aircraft for the Marine Corps.
Comprehensive review of defense contracts underway
A comprehensive review and validation of existing Department of Defense contracts for consulting services is underway. Steven Morani, Defense undersecretary for acquisition and sustainment, issued a memo instructing the Pentagon leadership to assess the non-essential projects for possible termination in the near future.
Component heads across the DOD will conduct the review. Morani wrote that the department will “take a phased approach” in reviewing the contract activities.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,579.91 | -29.42 | -0.64% |
| NASDAQ | 19,962.36 | -93.89 | -0.47% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| HII | 177.89 | 4.12 | 2.37% |
| LHX | 197.23 | 2.58 | 1.33% |
| NOC | 438.11 | 4.66 | 1.08% |
| GD | 246.2 | 2.02 | 0.83% |
| LMT | 436.29 | 3.34 | 0.77% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 438.11 | 4.66 | 1.08% |
| HII | 177.89 | 4.12 | 2.37% |
| LMT | 436.29 | 3.34 | 0.77% |
| LHX | 197.23 | 2.58 | 1.33% |
| GD | 246.2 | 2.02 | 0.83% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 106.27 | -5.79 | -5.17% |
| PSN | 61.95 | -3.13 | -4.81% |
| BAESY | 65.3 | -2.81 | -4.13% |
| BAH | 113.62 | -4.18 | -3.55% |
| KTOS | 25.99 | -0.86 | -3.20% |
