Executive Mosaic’s GovCon Index rose 0.66% to $5,290.05 mid-week for its seventh straight daily gain, matching its longest winning streak in May. Wall Street’s major stock indexes stayed positive as U.S. inflation dropped to 2.9% in July or below 3% for the first time since March 2021. The rate peaked at 9.1% in June 2022.
The blue-chip Dow Jones Industrial Average (+0.61%) advanced 242.75 points, while the S&P 500 (+0.38%) and Nasdaq Composite (+0.03%) inched higher. Charles Schwab (NYSE: SCHW) was among the biggest gainers with +4.59%. The American financial services company reported $29 billion in core new net assets in July, double the assets it gathered in the same month last year.
On the GovCon Index, Mercury Systems (Nasdaq: MRCY) soared 17.65% to $40 despite lower revenues and higher net loss in Q4 fiscal 2024 compared to Q4 fiscal 2023. However, its chairman and CEO, Bill Ballhaus, said Mercury delivered organic growth with expanding margins and robust free cash flow. The total backlog rose 16% year-over-year to a record $1.6 billion, while free cash flow jumped 1,515.8% to $61.4 million from a year ago.
BAE Systems and Palantir Technologies (NYSE: PLTR) were far distant second and third to Mercury Systems with +2.08% and +2.01%, respectively. V2X (NYSE: VVX) was the top decliner mid-week.
Leidos (NYSE: LDOS), another gainer, reported late Tuesday a $191 million contract award by the Army Contracting Command – Aberdeen Proving Ground for integrated lifecycle software and management solutions. The contract has a five-year performance period with a six-month extension option.
The latest consumer price index reported by the Bureau of Labor Statistics on Wednesday was the lowest level in over three years. Economists and market analysts are confident it will prompt the U.S. Federal Reserve to initiate a rate cut in September.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,290.05 | 34.72 | 0.66% |
| Dow Jones Industrial Average | 40,008.39 | 242.75 | 0.61% |
| S&P 500 | 5,455.21 | 20.78 | 0.38% |
| NASDAQ | 17,192.60 | 4.99 | 0.03% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| MRCY | 40 | 6.00 | 17.65% |
| BAESY | 69.74 | 1.42 | 2.08% |
| PLTR | 31 | 0.61 | 2.01% |
| LDOS | 147.34 | 2.52 | 1.74% |
| HII | 266.63 | 3.86 | 1.47% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| MRCY | 40 | 6.00 | 17.65% |
| HII | 266.63 | 3.86 | 1.47% |
| LMT | 563.22 | 3.80 | 0.68% |
| NOC | 505 | 2.62 | 0.52% |
| AVAV | 184.07 | 2.55 | 1.40% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 47.21 | -1.05 | -2.18% |
| LHX | 226.06 | -1.82 | -0.80% |
| TXT | 85.99 | -0.21 | -0.24% |
| BA | 168.5 | -0.26 | -0.15% |
| KBR | 64.83 | -0.08 | -0.12% |
