Executive Mosaic’s GovCon Index sustained its recovery rally, closing slightly higher at $4,895.06 (+0.28%). However, Wall Street’s major benchmarks ended in negative territory as the Trump administration prepares to impose tariffs on Mexico, Canada and China. The Dow Jones Industrial Average (-0.75%) shed 337.47 points, while the S&P 500 (-0.50%) and Nasdaq Composite (-0.28%) reversed Thursday’s gains.
Balanced Outcome
On the GovCon Index, gainers and decliners were dead even, 15 to 15. AeroVironment (Nasdaq: AVAV) was the top advancer with +4.75% and ICF (Nasdaq: ICFI) lost -2.62% to top the losing bunch. Palantir Technologies (Nasdaq: PLTR) hit a new 52-week high of $85.22 in intra-day trading then settled at $82.49, a new closing high. The data analytics firm will present its latest quarterly results after the closing bell on Monday, Feb. 3.
L3Harris Technologies (NYSE: LHX) tilted below the flat line despite reporting impressive financial results. In the fourth quarter and full-year 2024, net income climbed 261.9% and 26.2% year-over-year to $456 million and $1.51 billion. “2024 was a year of significant accomplishments as we delivered on our financial commitments. As we move into 2025, our momentum remains strong, driven by strong bookings, a robust pipeline and expanding international opportunities,” said Christopher Kubasik, chairman and CEO of L3Harris.
Also, on Friday, the U.S. Air Force awarded L3Harris a $76.2 million contract modification for the National Space Defense Center and Distributed Space Command and Control System Option Year Six sustainment. The award raised the contract’s total cumulative face value to $1.19 billion.
Major Headwind
The implementation of universal tariffs on imports from Canada and Mexico beginning Feb. 1 was a major headwind on Friday. Some market analysts think it will put upward pressure on inflation. On rate cuts, they expect the U.S. Feds to take a gradual approach and project two quarter-point rate reductions in 2025.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,895.06 | 13.60 | 0.28% |
| Dow Jones Industrial Average | 44,544.66 | -337.47 | -0.75% |
| S&P 500 | 6,040.53 | -30.64 | -0.50% |
| NASDAQ | 19,627.44 | -54.31 | -0.28% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 180.15 | 8.17 | 4.75% |
| MRCY | 41.69 | 1.09 | 2.68% |
| PLTR | 82.49 | 1.27 | 1.56% |
| ACN | 384.95 | 4.20 | 1.10% |
| VVX | 52.13 | 0.49 | 0.95% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| AVAV | 180.15 | 8.17 | 4.75% |
| ACN | 384.95 | 4.20 | 1.10% |
| NOC | 487.27 | 3.90 | 0.81% |
| LMT | 462.95 | 3.30 | 0.72% |
| HII | 197.26 | 1.76 | 0.90% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ICFI | 116.71 | -3.14 | -2.62% |
| KBR | 54.42 | -1.39 | -2.49% |
| BA | 176.52 | -3.01 | -1.68% |
| GIB | 117.82 | -1.19 | -1.00% |
| MMS | 75.29 | -0.70 | -0.92% |
