Executive Mosaic’s GovCon Index closed lower at $5,406.52 (-0.05%) following a meager loss to start the week. Wall Street paused from Friday’s rate cut rally, although the Dow Jones Industrial Average (+0.17%) inched higher and scored a new record close. The Nasdaq Composite (-0.85%) and the S&P 500 (-0.32%) ended in red territory.
AI heavyweight NVIDIA (Nasdaq: NVDA) and nearly all prominent chipmakers pulled down the tech-heavy Nasdaq Composite. Energy stocks, led by Exxon Mobil (NYSE: XOM), advanced Monday as WTI crude price rose more than 3% to a one-week high of $77.60. HR software provider Dayforce (NYSE: DAY) popped almost 4% after launching a new employee training tool with AI capabilities.
On the GovCon Index, Curtiss-Wright (NYSE: CW), Accenture (NYSE: ACN), and BAE Systems advanced more than one percent to lead 13 gainers. AeroVironment (Nasdaq: AVAV) sank 4.43% to top the 17 stocks in the losing bunch.
The U.S. Navy awarded L3 Harris Technologies (NYSE: LHX), through L3 Technologies Communication Systems, a $587.3 million cost-plus-incentive-fee contract for the design, production and delivery of electronic warfare test articles and fleet prototypes. The contract also includes engineering support, integration, test and maintenance and manufacturing development of the Next Generation Jammer Low Band program for the Navy EA-18G Growler and Royal Australian Air Force.
The rate-cutting cycle is a tailwind for stocks. John Stoltzfus, the chief investment strategist at Oppenheimer Asset Management, believes there is a clear way for an interest rate cut because a recession is off the table. He expects a quarter percentage point cut in September, but two more are possible in November and December.
Also, on Monday, San Francisco Federal Reserve President Mary Daly agreed with Fed Chairman Jerome Powell that the time to adjust policy is now. She added that it would be hard to imagine anything that could derail a September rate cut at this point.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,406.52 | -2.76 | -0.05% |
| Dow Jones Industrial Average | 41,240.52 | 65.44 | 0.16% |
| S&P 500 | 5,616.84 | -17.77 | -0.32% |
| NASDAQ | 17,725.77 | -152.02 | -0.85% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CW | 313.9 | 3.91 | 1.26% |
| ACN | 336.78 | 3.51 | 1.05% |
| BAESY | 69.92 | 0.71 | 1.03% |
| HII | 276.84 | 2.33 | 0.85% |
| J | 150.04 | 1.04 | 0.70% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CW | 313.9 | 3.91 | 1.26% |
| ACN | 336.78 | 3.51 | 1.05% |
| LMT | 558.1 | 3.09 | 0.56% |
| NOC | 512 | 2.66 | 0.52% |
| HII | 276.84 | 2.33 | 0.85% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 177.39 | -8.23 | -4.43% |
| PLTR | 30.85 | -0.93 | -2.93% |
| CG | 39.81 | -0.44 | -1.09% |
| BA | 173.48 | -1.48 | -0.85% |
| CACI | 471.02 | -3.98 | -0.84% |
