Executive Mosaic’s GovCon Index pulled back 0.89% to $5,218.19, ending the week in the red. Wall Street sunk further due to heightened volatility caused by a weakening economy and labor market. The Nasdaq Composite tumbled 2.43%, while the S&P 500 (-1.84%) and Dow Jones Industrial Average (-1.51%) dropped sharply.
Intel (Nasdaq: INTC) was the worst performer on the tech-heavy Nasdaq Composite, which entered correction territory. Besides reporting a wider-than-expected $1.6 billion loss in Q2 2024, the chipmaker announced a massive layoff of up to 19,650 employees. Only Apple (Nasdaq: AAPL) of the Magnificent Seven stocks finished with gains. The Clorox Company (NYSE: CLX) topped the S&P 500 Index with +7.42%.
The GovCon Index fell for the second straight day following a hefty gain on Wednesday. Less than one-third of its constituents or nine stocks advanced Friday. ICF (Nasdaq: ICFI) bucked the downtrend with +9.85%. Carlyle Group (Nasdaq: CG) was the worst performer (-7.39%) among 21 decliners, although Palantir Technologies (NYSE: PLTR) and five others dropped more than 4%.
In Q2 2024, ICF reported revenue and net income growth of 2.33% and 20.7% year-over-year to $512 million and $25.6 million, respectively. The revenue from the federal government reached $387 million. Because of a growing backlog and a record $10.5 billion business development pipeline at the quarter’s end, the consulting and technology services provider expects continued strong growth this year.
Carlyle announced leadership changes to strengthen its European buyout team. The firm also said a reset is underway to shore up confidence amid slower-than-expected fundraising activities in the region. Palantir Technologies, GCI’s top performer thus far in 2024, slipped 5.14% ahead of its second-quarter earnings presentation on Aug. 5.
Also, on Friday, the U.S. Navy awarded Raytheon, an RTX (NYSE: RTX) business, a $159.9 million firm-fixed-price contract for MK 15 Close-In Weapon System upgrades and conversions, system overhauls, MK 15 Mod 31 SeaRAM upgrade kits and conversions and associated hardware.
The U.S. Federal Reserve’s focus has shifted from moderating inflation to the labor market. In July, nonfarm payrolls grew 114,000 versus the 215,000 average in the last 12 months. As a result, the unemployment rose to 4.3%, the highest since Oct. 2021. Many expect the Feds to ease its monetary policy.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,218.19 | -46.27 | -0.89% |
| Dow Jones Industrial Average | 39,737.26 | -610.71 | -1.51% |
| S&P 500 | 5,346.56 | -100.12 | -1.84% |
| NASDAQ | 16,776.16 | -417.99 | -2.43% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ICFI | 160.41 | 14.39 | 9.85% |
| BAESY | 66.19 | 0.56 | 0.85% |
| BAH | 143.98 | 1.03 | 0.72% |
| LDOS | 145.39 | 0.64 | 0.44% |
| LHX | 230.19 | 0.97 | 0.42% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ICFI | 160.41 | 14.39 | 9.85% |
| NOC | 494.55 | 1.19 | 0.24% |
| BAH | 143.98 | 1.03 | 0.72% |
| LHX | 230.19 | 0.97 | 0.42% |
| LDOS | 145.39 | 0.64 | 0.44% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CG | 44.23 | -3.53 | -7.39% |
| PLTR | 24.74 | -1.34 | -5.14% |
| CW | 275.98 | -14.83 | -5.10% |
| KTOS | 20.98 | -1.05 | -4.77% |
| BA | 169.95 | -8.36 | -4.69% |
