Executive Mosaic’s GovCon Index sunk nearly 1% to $4,897.60, extending its downswing to five trading days. Wall Street’s major exchanges closed higher as Q3 gets underway. The Nasdaq Composite (+0.83%) got a big lift from mega-cap tech stocks, while the Dow Jones Industrial Average (+0.13%) and S&P 500 (+0.27%) ended slightly higher.
Tesla (Nasdaq: TSLA) was the headline stock on July 1. Elon Musk’s stock rose 6.05% and breached $200 for the first time despite market analysts predicting lower deliveries in Q2 2024 due to slowing EV demand. NIO (NYSE: NIO), a smart EV maker from China, popped 6.73% after reporting record-high deliveries in June.
Mercury Systems (Nasdaq: MRCY), the GovCon Index’s worst performer last week, advanced 5.04%. However, only four GCI stocks, including Boeing (NYSE: BA), Palantir Technologies (NYSE: PLTR) and HII (NYSE: HII), had positive gains. ICF (Nasdaq: ICFI) tanked 8.45% to lead 26 decliners.
ICF received a downgrade from Truist Securities. An analyst from the strategic advisory firm changed the stock rating from buy to hold rating, citing the changing political landscape and shifting regulatory framework.
Meanwhile, Boeing announced a definitive agreement to acquire Spirit AeroSystems (NYSE: SPR). In a press release Monday, the plane maker said the all-stock transaction has a total value of around $8.3 billion, including Spirit’s net debt. Palantir Technologies, GCI’s top performer in the first half of 2024, is on a three-day winning streak.
The U.S. Air Force awarded Northrop Grumman Space System, one of Northrop Grumman’s (NYSE: NOC) business sectors, a $93.8 million contract modification to a previously awarded contract for Next Generation Overhead Persistent Infrared Polar Space Vehicles 1 and 2. Northrop Grumman Systems also secured a $79.2 million add-work modification to a previously awarded Defense Experimentation Using Commercial Space Internet contract.
Most Magnificent Seven stocks outperformed to kick off July and a new quarter. While market analysts expect the tech rally to continue in the second half of 2024, a rate cut is a strong tailwind for equity markets.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,897.70 | -47.16 | -0.96% |
| Dow Jones Industrial Average | 39,169.52 | 50.66 | 0.13% |
| S&P 500 | 5,475.09 | 14.61 | 0.27% |
| NASDAQ | 17,879.30 | 146.70 | 0.83% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| MRCY | 28.35 | 1.36 | 5.04% |
| BA | 186.7 | 4.69 | 2.58% |
| PLTR | 25.88 | 0.55 | 2.17% |
| HII | 246.79 | 0.46 | 0.19% |
| CW | 270.89 | -0.09 | -0.03% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| BA | 186.7 | 4.69 | 2.58% |
| MRCY | 28.35 | 1.36 | 5.04% |
| PLTR | 25.88 | 0.55 | 2.17% |
| HII | 246.79 | 0.46 | 0.19% |
| CW | 270.89 | -0.09 | -0.03% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| ICFI | 135.91 | -12.55 | -8.45% |
| AVAV | 175.67 | -6.49 | -3.56% |
| BAESY | 64.56 | -2.29 | -3.43% |
| TTEK | 197.82 | -6.66 | -3.26% |
| VVX | 46.74 | -1.22 | -2.54% |
