Executive Mosaic’s GovCon Index extended its winning run to six days, rising +0.92% higher to $5,005.25. Wall Street’s top three indexes reversed course from Wednesday’s breakout. The Nasdaq Composite (+0.89%), S&P 500 (-0.21%), and the Dow Jones Industrial Average (-0.16%) ended in the red.
All Magnificent Seven stocks underperformed, led by the iPhone maker’s -4.04% drop. Market research firm Canalys reported that in 2024, Apple (Nasdaq: AAPL) fell to third place in smartphone sales in China behind Vivo and Huawei. The utilities and real estate sectors were the top gainers on the S&P 500 Index.
Uptrend Continues
The last time the GovCon Index finished above $5,000 was Dec. 16, 2024. It was a bumpy road since, leading to a -7.03% loss for the month. GCI is up +3.46% from year-end, aided by seven positive returns in ten trading sessions in January.
L3Harris Technologies (NYSE: LHX) and BAE Systems led 24 advancers, while Kratos Defense & Security Solutions (Nasdaq: KTOS), the worst performer, declined -1.29% and ended its five-day winning streak. Only Parsons (NYSE: PSN) was unchanged on Thursday.
Christopher E. Kubasik, co-founder, chairman, and CEO of L3Harris, wrote a letter to the Department of Government Efficiency addressed to Elon Musk and Vivek Ramaswamy. His open letter included policy proposals to keep the homeland and borders safe and secure, as well as recommendations to modernize America’s national defense ecosystem.
Contract Awards
Also, on Thursday, the US Navy awarded Northrop Grumman Systems, a business segment of Northrop Grumman (NYSE: NOC), a $39.7 million cost-plus-fixed-fee and cost-only modification to a previously awarded contract to exercise options for Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare Increment One Block One (I1B1) engineering and sustainment support and associated other direct costs.
Lockheed Martin’s Rotary and Mission Systems, a unit of Lockheed Martin (NYSE: LMT), obtained a modification contract from the Naval Air Systems Command to support the MH-60S aircraft program. The $19 million award will provide two initial structural modification kits and non-recurring engineering support and components.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,005.25 | 45.90 | 0.92% |
| NASDAQ | 19,338.29 | -172.94 | -0.89% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LHX | 218.48 | 4.34 | 2.03% |
| BAESY | 59.89 | 1.15 | 1.96% |
| NOC | 481.19 | 8.89 | 1.88% |
| CACI | 454.28 | 7.50 | 1.68% |
| BA | 168.93 | 2.73 | 1.64% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 481.19 | 8.89 | 1.88% |
| CACI | 454.28 | 7.50 | 1.68% |
| LHX | 218.48 | 4.34 | 2.03% |
| CW | 365.91 | 4.07 | 1.12% |
| HON | 222.69 | 3.15 | 1.43% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KTOS | 33.61 | -0.44 | -1.29% |
| AVAV | 165.39 | -2.14 | -1.28% |
| MRCY | 42.86 | -0.42 | -0.97% |
| VVX | 51.68 | -0.11 | -0.21% |
| LDOS | 155.09 | -0.16 | -0.10% |
