Executive Mosaic’s GovCon Index surged 1.19% to $4,982.77 for its fourth consecutive daily gain. The Nasdaq Composite had the same percentage gain, while the Dow Jones Industrial Average (+0.46%) and S&P 500 (+1.03%) marked their four-day and three-day win streaks.
Wall Street picked up steam from Friday’s softer jobs report in April. About 75% of NYSE stocks advanced at the start of a new trading week. Major airline stocks trended higher, although Spirit Airlines (NYSE: SAVE) nosedived 9.7%. The discount carrier reported a wider loss in Q1 2024 for its tenth consecutive quarterly loss.
Tech stocks, led by Super Micro Computer’s (Nasdaq: SMCI) +6.09%, helped push the market higher. Apple’s (Nasdaq: AAPL) 0.91% decline is an offshoot of Berkshire Hathaway’s (NYSE: BRK-A) (NYSE: BRK-B) reduced position. Warren Buffett’s conglomerate sliced its holding in the iPhone maker by 13% in the first quarter.
Only three of the 30 GovCon Index stocks missed ending with positive gains. Palantir Technologies (NYSE: PLTR), AeroVironment (Nasdaq: AVAV) and Booz Allen Hamilton (NYSE: BAH) showed the way with outsized gains. Boeing (NYSE: BA) declined 0.8% on news of a Federal Aviation Administration probe on its 787 jets.
Palantir, a prominent name in the artificial intelligence race, rose 8.06% before presenting its first-quarter results. However, the AI stock sunk 8.37% in after-hours trading. The data analytics software maker reported strong earnings growth versus Q1 2023, but commercial growth in the U.S. dropped 40% compared to 70% in Q4 2023. Market analysts worry about sustainability of the hyper growth.
AeroVironment popped 6.59% following the Pentagon’s selection of its Switchblade-600 loitering munition as the first weapon under the Replicator initiative. The latter aims to enhance the U.S. military’s autonomous and uncrewed capabilities, and the budget for fiscal year 2024 is $500 million.
Booz Allen climbed 3.82% after launching its aiSSEMBLE Baseline platform last Friday. Apart from the free AI tools that protect sensitive data, the platform simplifies building and deploying AI-based systems.
Also, on Monday, the U.S. Navy awarded Northrop Grumman Systems, the global security company of Northrop Grumman (NYSE: NOC), a $169.7 million cost-plus-fixed-fee contract for sustainment engineering and logistics support to the MQ-4C Triton air vehicles mission control and operator training systems for the Navy and the Royal Australian Air Force.
Federal Reserve officials are free to speak again about interest rates with the end of the blackout period. Richmond Fed President Tom Barkin said Monday that the current benchmark policy rate is enough to bring inflation down and he doesn’t see the economy overheating.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,982.77 | 59.34 | 1.19% |
| Dow Jones Industrial Average | 38,852.27 | 176.59 | 0.46% |
| S&P 500 | 5,180.74 | 52.95 | 1.03% |
| NASDAQ | 16,349.25 | 192.91 | 1.19% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| PLTR | 25.21 | 1.88 | 8.06% |
| AVAV | 179.89 | 11.12 | 6.59% |
| BAH | 152.88 | 5.63 | 3.82% |
| KTOS | 19.01 | 0.47 | 2.54% |
| CG | 41.99 | 0.93 | 2.27% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| AVAV | 179.89 | 11.12 | 6.59% |
| CACI | 423.75 | 8.80 | 2.12% |
| BAH | 152.88 | 5.63 | 3.82% |
| CW | 273.69 | 5.52 | 2.06% |
| TTEK | 212.12 | 4.37 | 2.10% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| BA | 178.35 | -1.44 | -0.80% |
| HON | 195 | -0.81 | -0.41% |
| NOC | 468.86 | -0.23 | -0.05% |
| GIB | 103.76 | 0.08 | 0.08% |
| HII | 246.59 | 0.36 | 0.15% |
