Executive Mosaic’s GovCon Index erased Monday’s gains, falling 1.24% and closing below $5,000 for the fourth time this month. The Dow Jones Industrial Average (-0.61%) extended its losing streak to nine days, its most prolonged downturn since 1978. Tech stocks led the broad market retreat a day ahead of the US Feds’ rate decision.
The tech-heavy Nasdaq Composite (-0.32%) declined but stayed within record levels, while the S&P 500 (0.39%) settled lower. Most healthcare stocks ended in the red, although Pfizer (NYSE: PFE) went against the trend with a +4.67% gain. Albert Bourla, the pharmaceutical company’s CEO, said the incoming Trump administration intends to initiate a pharmacy benefit management reform.
Short-lived Rebound
The GovCon Index had a short-lived rebound as 27 of 30 constituents declined compared to 22 gainers in the previous session. ICF (Nasdaq: ICFI) and two other stocks ended positive but with tiny gains. Monday’s top performers, Curtiss-Wright (NYSE: CW) and Kratos Defense & Security Solutions (Nasdaq: KTOS), led the losing side.
The Defense Advanced Research Projects Agency awarded Kratos a $6.5 million single-award contract to provide flight testing for hypersonic research supporting future weapon systems. Its president, Dave Carter, said Kratos is committed to helping partners like DARPA to develop new technologies and execute test regimes and programs.
KBR (NYSE: KBR) announced an estimated $445 million cost-plus-fixed-fee contract under the Department of Defense Information Analysis Center’s multiple-award contract vehicle. The DoD IAC MAC task orders came from the U.S. Air Force’s 774th Enterprise Sourcing Squadron.
The US Air Force awarded Boeing (NYSE: BA) a $54.2 million firm-fixed-price and cost-plus-fixed-fee modification to a previously awarded F-15 Eagle Passive/Active Warning Survivability System contract.
Meanwhile, AeroVironment (Nasdaq: AVAV) will continue working on its $990 million contract for Switchblade systems with the US Army. On Tuesday, the U.S. Government Accountability Office denied the protest filed against the sole-source contract award.
Backdrop
The better-than-expected consumer spending last month was a backdrop to Wednesday’s rate announcement. The Commerce Department reported that retail sales rose 0.7% in November compared to 0.5% in October. Analysts say the boost indicates a healthy economy, although it could prompt policymakers to go slow on rate cuts in 2025.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,949.39 | -61.44 | -1.24% |
| Dow Jones Industrial Average | 43,449.90 | -267.58 | -0.61% |
| NASDAQ | 20,109.06 | -64.83 | -0.32% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ICFI | 126.4 | 0.46 | 0.37% |
| BAH | 135.8 | 0.24 | 0.18% |
| ACN | 357.3 | 0.24 | 0.07% |
| BA | 173.03 | -0.14 | -0.08% |
| TTEK | 41.49 | -0.05 | -0.12% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ICFI | 126.4 | 0.46 | 0.37% |
| ACN | 357.3 | 0.24 | 0.07% |
| BAH | 135.8 | 0.24 | 0.18% |
| TTEK | 41.49 | -0.05 | -0.12% |
| BA | 173.03 | -0.14 | -0.08% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CW | 364.49 | -20.53 | -5.33% |
| KTOS | 27.25 | -1.04 | -3.68% |
| KBR | 56.82 | -1.78 | -3.04% |
| AVAV | 164.04 | -4.76 | -2.82% |
| MRCY | 38.24 | -1.09 | -2.77% |
