Executive Mosaic’s GovCon Index rose 0.86% to $5,501.82, a new record close. On Wall Street, the blue-chip Dow Jones Industrial Average advanced 0.59% to a fresh record, while the benchmark S&P 500 was flat. The tech-heavy Nasdaq Composite (-0.23%) ticked lower due to the slump of a top constituent.
NVIDIA (Nasdaq: NVDA) fell 6.38%, notwithstanding a positive Q2 fiscal 2025 performance. Market analysts expressed reservations about the continuous growth after the AI king said margins would moderate throughout the rest of the year. Electronics retailer Best Buy (NYSE: BBY) popped 14.11%, but discount store chain operator Dollar General (NYSE: DG) tanked 32.15%.
The GovCon Index extended its winning streak to three days as 27 of 30 stocks finished with gains. V2X (NYSE: VVX), Carlyle Group (Nasdaq: CG), and Maximus (NYSE: MMS) posted modest losses. AeroVironment (Nasdaq: AVAV), the top GCI performer for the second straight trading session, advanced 5.03% to $203.61.
AeroVironment surged 9.06% on mid-week after the drone maker announced winning a $990 million supply contract with U.S. Army. With the contract running until August 2025, revenue streams are sure over the next five years. Investment firm Baird upgraded the defense stock from neutral to outperform.
The U.S. Air Force awarded Raytheon, an RTX (NYSE: RTX), two contracts. The first is a not-to-exceed $1,045,597,364 fixed-price-incentive, firm-target, undefinitized contract for Group B hardware, spares, and support equipment. This contract is for the F-22 sensor enhancements program. The second is a $51.7 million cost-plus-fixed-fee contract for the Defense Experimentation Using Commercial Space Internet program.
Also, on Thursday, the U.S. Navy awarded BAE Systems Technology Solutions and Services an $84.1 million cost-plus-fixed-fee modification to a previously awarded indefinite-delivery/indefinite-quantity contract for exterior communications or EXCOMM-related top secret and sensitive compartment information requirements.
Thursday’s second-quarter 2024 GDP report showed strong consumer spending and favorable business investment. From a 1.4% growth rate in the first quarter, the U.S. economy grew to a healthy annual pace of 3%, revised from 2.8%. Some economists say consumer and corporate spending could reaccelerate when the Feds start lowering interest rates.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,501.82 | 47.13 | 0.86% |
| Dow Jones Industrial Average | 41,335.05 | 243.63 | 0.59% |
| S&P 500 | 5,591.96 | -0.22 | -0.00% |
| NASDAQ | 17,516.43 | -39.60 | -0.23% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 203.61 | 9.75 | 5.03% |
| PLTR | 31 | 0.64 | 2.11% |
| BAESY | 72.46 | 1.27 | 1.78% |
| HON | 207.51 | 2.51 | 1.22% |
| MRCY | 37.55 | 0.45 | 1.21% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 203.61 | 9.75 | 5.03% |
| NOC | 519.35 | 5.79 | 1.13% |
| LMT | 566.85 | 2.87 | 0.51% |
| ACN | 340.21 | 2.82 | 0.84% |
| HII | 282.86 | 2.81 | 1.00% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 56.12 | -0.13 | -0.23% |
| CG | 40.08 | -0.05 | -0.12% |
| MMS | 92.41 | -0.01 | -0.01% |
| PSN | 94.31 | 0.07 | 0.07% |
| TXT | 90.2 | 0.10 | 0.11% |
