Executive Mosaic’s GovCon Index rose +1.30% to $4,881.46 and averted a seven-day skid. Wall Street bounced back on strong corporate earnings, although the threat of tariffs muted overall gains. The Dow Jones Industrial Average (+0.38%) hit an 8-week high, while the S&P 500 (+0.53%) and Nasdaq Composite (+0.25%) settled higher.
International Business Machines (NYSE: IBM) popped +12.96% due to the significant increase in its generative AI business. Vistra (NYSE: VST) topped S&P 500 advancers with +13.59%. Market analysts see an opportunity for the integrated retail electricity and power generation company to power AI data centers.
Downturn Ends
The GovCon Index arrested its downtrend as 26 of 30 constituents powered the government contracting sector. CGI (NYSE: GIB) and Boeing (NYSE: BA) advanced more than 3% to lead gainers. Tetra Tech (Nasdaq: TTEK) was the worst performer among the four decliners.
JPMorgan (NYSE: JPM) analyst Seth Seifman maintained an overweight rating on Boeing but raised the price target to $200, citing incremental confidence in the business outlook. The stock trades at $179.53 per share. Boeing named John Mulholland, former International Space Station manager, as the new head of the Starliner spacecraft program.
General Dynamics (NYSE: GD) joined advancers after reporting strong earnings on Wednesday. Phebe N. Novakovic, chairman and CEO of the aerospace and defense company, said, “We had a solid fourth quarter, capping off a year that saw steady growth in revenue and earnings across all four segments.” The share price rose +2.18% to $256.93 following a -4.24% drop midweek.
Northrop Grumman (NYSE: NOC) closed +0.38% higher at $483.37 after reporting $1.26 billion net earnings in Q4 2024 compared to the $535 million net loss in Q4 2023. While the $10.69 billion revenue was nearly flat from a year ago, the total backlog increased 7.29% to $91.47 billion versus Q3 2024. Kathy J. Warden, chair, president and CEO of Northrop Grumman, said the record backlog provides a solid foundation for future growth.
Strong Momentum
The advance estimate of the Q4 2024 real gross domestic product released Thursday showed a 2.3% annual rate increase. Also, according to the U.S. Bureau of Economic Analysis, the 2.8% increase in real GDP last year reflected increases in consumer spending, investment, government spending and exports. Market analysts say the U.S. economy ended 2024 with a strong momentum.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,881.46 | 63.66 | 1.30% |
| NASDAQ | 19,681.75 | 49.43 | 0.25% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| GIB | 119.01 | 4.47 | 3.90% |
| BA | 179.53 | 5.87 | 3.38% |
| RTX | 128.98 | 3.85 | 3.08% |
| KTOS | 33.65 | 0.90 | 2.75% |
| CW | 346.84 | 8.41 | 2.49% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CW | 346.84 | 8.41 | 2.49% |
| ACN | 380.75 | 6.33 | 1.69% |
| BA | 179.53 | 5.87 | 3.38% |
| GD | 256.93 | 5.48 | 2.18% |
| LMT | 459.65 | 5.29 | 1.16% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| TTEK | 36.57 | -1.10 | -2.92% |
| PSN | 78.81 | -1.04 | -1.30% |
| VVX | 51.64 | -0.16 | -0.31% |
| CG | 56.31 | -0.04 | -0.07% |
| LHX | 212.06 | 0.11 | 0.05% |
