Executive Mosaic’s GovCon Index drifted lower, declining -0.13% to a new low of $4,489.26. Wall Street scrambled to rise from Friday’s broad market selloff but only the Dow Jones Industrial Average (+0.08%) ended positive. The Nasdaq Composite (-1.21%) and S&P 500 (-0.50%) stayed in negative territory.
Fifty-fifty
Gainers matched decliners on the GovCon Index. BAE Systems led 15 GCI gainers and outperformed on the London Stock Exchange with +2.6% and 3.7%, respectively. KBR’s (NYSE: KBR) strong financial performance in Q4 fiscal 2024 and solid bookings momentum drove its stock higher on Monday. Palantir Technologies (Nasdaq: PLTR), the worst performer, tanked -10.53% to start the week.
Newly elected German chancellor Friedrich Merz vowed a more assertive foreign policy, which could also mean higher security spending. British weapons manufacturer BAE Systems would benefit from increased defense expenditures in Europe. In 2024, sales revenue hit a record $35.68 billion.
KBR reported a 261.9% year-over-year increase in net income to $76 million. In the 12 months ending Jan. 3, 2025, net income reached $375 million compared to the $265 million net loss in fiscal 2023. The bookings for the year were $8.8 billion, while the backlog at year-end stands at $21.2 billion. Stuart Bradie, president and CEO of KBR, said, “We believe our business portfolio is well aligned with the priorities of the new administration in the U.S., especially in the areas of national security and energy policy.”
Palantir Technologies fell below $100 and extended its losing streak to four trading sessions. The AI stock has lost -27.2% since U.S. Defense Secretary Pete Hegseth ordered a review of contracting activities. He also instructed the Pentagon leadership to prepare a plan for an 8% budget cut annually for the next five years.
UBS upgraded RTX (NYSE: RTX) from “neutral” to “buy,” citing international defense growth, and raised its price target to $147 from $142. The multinational investment bank said RTX’s two business segments, Collins Aerospace and Pratt & Whitney, are earnings drivers. As of Feb. 24, 2025, the share price is $125.43.
Tariffs going forward
Tariffs on Canada and Mexico will start next month after a 30-day suspension. On Monday, U.S. President Donald Trump said, “The tariffs are going forward on time, on schedule.” He added that intended reciprocal tariffs will begin as soon as April. Tariffs and inflation risks caused Wall Street’s downturn last week.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,489.26 | -5.76 | -0.13% |
| NASDAQ | 19,286.93 | -237.08 | -1.21% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAESY | 66.64 | 1.69 | 2.60% |
| KBR | 50.17 | 1.03 | 2.10% |
| RTX | 125.43 | 2.14 | 1.74% |
| BA | 179.91 | 2.76 | 1.56% |
| GD | 246.27 | 3.21 | 1.32% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| GD | 246.27 | 3.21 | 1.32% |
| BA | 179.91 | 2.76 | 1.56% |
| RTX | 125.43 | 2.14 | 1.74% |
| NOC | 449.94 | 1.98 | 0.44% |
| BAESY | 66.64 | 1.69 | 2.60% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 90.68 | -10.67 | -10.53% |
| KTOS | 24.39 | -0.90 | -3.56% |
| FLR | 37.16 | -0.57 | -1.51% |
| PSN | 58.75 | -0.74 | -1.24% |
| AVAV | 152.9 | -1.89 | -1.22% |
