Executive Mosaic’s GovCon Index closes lower at $5,653.60 following a -0.79% skid. Wall Street’s post-election rally has paused or has ended as major US stock indexes turned red. The Dow Jones Industrial Average (-0.86%) shed 382.15 points, while the S&P 500 (-0.29%) and Nasdaq Composite (-0.09%) dipped from record highs.
Around 77% of NYSE stocks and 67% of Nasdaq Composite constituents declined. Some market analysts say it could be market exhaustion from sharp rallies. However, the 10-year Treasury yield spiked 13.1 basis points to 4.435%. The US dollar also gained strength versus six major currencies.
Trend reversal
The trend reversed on the GovCon Index after two daily solid gains. 24 of 30 stocks ended in negative territory. Dow Jones member Honeywell (Nasdaq: HON) rose 3.87%, but all other advancers had less than one percent gains. AeroVironment (Nasdaq: AVAV), the worst performer, tanked 7.29% Tuesday.
Honeywell outperformed on news that Elliott Investment Management built a significant stake, investing more than $5 billion in the industrial conglomerate. The activist investor firm advocates the split of Honeywell’s aerospace and automation divisions. Elliot sent the Board of Directors a letter proposing the breakup and creation of two separate entities.
AeroVironment snapped its three-day winning streak, although the uncrewed aircraft systems manufacture remains nearly 73% up year-to-date. The defense stock is the second-best GCI performer thus far in 2024 after Palantir Technologies (NYSE: PLTR).
New contract awards
The US Air Force awarded General Dynamics Information Technology, a General Dynamics (NYSE: GD) technology and professional services company, a ceiling $5.57 billion indefinite-delivery/indefinite-quantity contract for mission partner environment operations, maintenance, and sustainment.
Also, on Tuesday, the US Air Force awarded Boeing (NYSE: BA) a $233.76 million modification to a previously awarded flight test telemetry termination production requirements contract.
The US Navy awarded BAE Systems Technology Solutions and Services a $104.8 million cost-plus-fixed-fee, level of effort, indefinite-delivery/indefinite-quantity contract to provide the Naval Air Warfare Center, Aircraft Division, Webster Outlying Field, Ship and Air Integrated Warfare Division with various support such as engineering, installation, integration and logistics.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,653.60 | -44.86 | -0.79% |
| Dow Jones Industrial Average | 43,910.98 | -382.15 | -0.86% |
| NASDAQ | 19,281.40 | -17.36 | -0.09% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| HON | 233.95 | 8.71 | 3.87% |
| ACN | 360.61 | 3.31 | 0.93% |
| KTOS | 27.26 | 0.18 | 0.66% |
| TTEK | 48.26 | 0.14 | 0.29% |
| GIB | 112.15 | 0.30 | 0.27% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| HON | 233.95 | 8.71 | 3.87% |
| ACN | 360.61 | 3.31 | 0.93% |
| GIB | 112.15 | 0.30 | 0.27% |
| J | 147.11 | 0.23 | 0.16% |
| KTOS | 27.26 | 0.18 | 0.66% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 218.03 | -17.14 | -7.29% |
| FLR | 48.5 | -1.32 | -2.65% |
| BA | 145.17 | -3.79 | -2.54% |
| CG | 52.27 | -1.03 | -1.93% |
| BAESY | 70.72 | -1.24 | -1.72% |
