Executive Mosaic’s GovCon Index settled higher at $5,168.47 (+2.85%) after logging its largest one-day gain. Wall Street welcomed President Donald Trump’s decision to delay imposing across-the-board tariffs on trading partners. The Dow Jones Industrial Average (+1.24%), S&P 500 (+0.88%), and the Nasdaq Composite closed at new week highs.
Only energy among the 11 S&P 500 primary sectors declined to start the shortened trading week. Market movers include Dow Jones component 3M (NYSE: MMM) and computer technology company Oracle (NYSE: ORCL). The ten-year Treasury yield ended at 4.57%, its lowest level in two weeks.
Best Day Performance
The GovCon Index had its best day performance in 2024 on July 16 (+2.04%) before this new record. Only one of the 30 GCI stocks ended in the red on Tuesday. Fluor Corporation (NYSE: FLR) and AeroVironment (Nasdaq: AVAV) were the top performers, although 10 constituents advanced between 3.4% and 4.7%. Tetra Tech (Nasdaq: TTEK) was the lone decliner.
Kratos Defense & Security Solutions (Nasdaq: KTOS) hit a new 52-week high of $35.31 in intra-day trading. The company announced a $34.8 million award modification to a previously awarded cost-plus-fixed-fee contract from the U.S. Marine Corps. This expansion supports the XQ-58A Unmanned Aerial Systems mission systems and subsystems integration for the Marine Air-Ground Task Force Unmanned Aerial System Expeditionary Tactical Aircraft.
Also, on Tuesday, Citigroup (NYSE: CITI) upgraded its rating for RTX (NYSE: RTX) from “neutral” to “buy” and raised the price target to $153. The defense stock trades at $125.75 per share. CITI analysts note RTX’s robust defense backlogs and aftermarket growth due to higher aircraft deliveries and demand for refurbishments.
Temporary Relief
Tariff uncertainty remains a headwind for stocks. During Monday’s signing ceremony at the Oval Office, US President Trump said 25% tariffs on Mexico and Canada are forthcoming on Feb. 1, while the levy on Chinese goods is 60%. However, a specific policy is not yet in place.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,168.47 | 147.29 | 2.85% |
| NASDAQ | 19,756.78 | 126.58 | 0.64% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| FLR | 53.52 | 3.13 | 6.21% |
| AVAV | 177.52 | 8.78 | 5.20% |
| KTOS | 35.22 | 1.60 | 4.76% |
| BAH | 142.45 | 6.39 | 4.70% |
| NOC | 504.45 | 22.07 | 4.58% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 504.45 | 22.07 | 4.58% |
| LMT | 506.29 | 15.97 | 3.26% |
| CW | 382.18 | 15.26 | 4.16% |
| CACI | 465.18 | 12.79 | 2.83% |
| AVAV | 177.52 | 8.78 | 5.20% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| TTEK | 42.31 | -0.27 | -0.63% |
| ACN | 356.42 | 3.83 | 1.09% |
| HON | 225.07 | 2.49 | 1.12% |
| PSN | 96.44 | 1.21 | 1.27% |
| J | 141.23 | 1.97 | 1.41% |
