Executive Mosaic’s GovCon Index marked its best day performance, finishing 1.99% higher at $5,573.77. Major U.S. stock indexes also hit new all-time highs after Tuesday’s presidential elections. The Dow Jones Industrial Average (+3.57%) added 1,508.05 points, while the Nasdaq Composite (+2.95%) and S&P 500 (+2.53%) posted significant gains.
Wall Street reacted positively to the election results and new mandate for Donald Trump in his second non-consecutive term as POTUS. Many financial stocks exploded, including Goldman Sachs (NYSE: GS), the lead gainer on the blue-chip Dow Jones with +13.1%. On the S&P 500, Discover Financial Services (NYSE: DFS) soared +20.22%. TESLA (Nasdaq: TSLA) surged +14.75% to lead Nasdaq’s rally.
GovCon Index Breakouts
The GovCon Index recorded its most significant daily gain, eclipsing the +1.77% on Aug. 8, 2024. Mercury Systems (Nasdaq: MRCY), the top performer among 22 gainers, rose 23.49% to match Palantir Technologies’ (NYSE: PLTR) monster gain on Tuesday. There were multiple breakouts mid-week, notably V2X (NYSE: VVX), Carlyle Group (Nasdaq: CG), Palantir Technologies, and Fluor Corporation (NYSE: FLR). Tetra Tech (Nasdaq: TTEK) fell 7.05% to lead eight decliners.
Mercury Systems and V2X (+9.8%) extended their winning streaks after reporting previously strong results in Q1 fiscal 2025 and Q3 2024, respectively. Palantir Technologies sustained its momentum and surged +8.61% higher due to strong government spending and increased demand for generative AI technology.
Contract awards
Tetra Tech announced late Tuesday that the Defense Logistics Agency selected the company for the J6 Enterprise Technology Services or JETS 2.0 multiple-award contract. The $12 billion award includes Amyx operations.
The U.S. Navy awarded BAE Systems Technology Solutions & Services a $122.85 million cost-plus-fixed-fee contract for systems engineering and integration support services for the U.S. Trident II Strategic Weapon System Program and D5 Life Extension 2 Strategic Systems Programs Alteration.
Also on Wednesday, the Navy awarded Booz Allen Hamilton (NYSE: BAH) and 10 other companies a hybrid firm-fixed-price and cost, indefinite-delivery indefinite-quantity, multiple award contract to provide professional services support to the Marine Corps Installment Command. The combined contracts estimated value is $164.5 million.
Election effect
Election news and quick results announcement lifted the US dollar and the 10-year T-note yield to four-month highs. Bitcoin (BTCUSD) and crypto-related stocks had a field day. The cryptocurrency market expects lax regulation and support for digital currencies by the incoming administration.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,573.77 | 110.86 | 1.99% |
| NASDAQ | 18,983.47 | 544.30 | 2.95% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| MRCY | 42.22 | 8.03 | 23.49% |
| VVX | 68.82 | 6.14 | 9.80% |
| CG | 54.23 | 4.77 | 9.64% |
| PLTR | 55.53 | 4.40 | 8.61% |
| FLR | 58.74 | 4.15 | 7.60% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CW | 377.46 | 17.09 | 4.74% |
| GD | 308.46 | 11.81 | 3.98% |
| ACN | 356.13 | 10.64 | 3.08% |
| NOC | 523.14 | 10.24 | 2.00% |
| HII | 203.21 | 9.97 | 5.16% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| TTEK | 46.8 | -3.55 | -7.05% |
| BAH | 179.96 | -5.32 | -2.87% |
| BA | 147.16 | -3.84 | -2.54% |
| AVAV | 216.32 | -3.35 | -1.53% |
| ICFI | 169.81 | -1.19 | -0.70% |
