Executive Mosaic’s GovCon Index outperformed the broader market, rising 0.70% to $4,869.50. Wall Street’s major indexes retreated to the red zone. The Dow Jones Industrial Average (-0.96%) shed 375 points, while the S&P 500 (-0.46%) and Nasdaq Composite (-0.64%) escaped closing at their worst levels.
The significant headwind Thursday was the GDP data that showed the U.S. economy slowed in the first quarter of 2024. Surging gold prices in March, higher production, and almost double quarterly profit lifted Newmont (NYSE: NEM). The gold stock advanced 12.46%.
Meta Platforms (Nasdaq: META) fell 10.56% after the Magnificent Seven member said it would spend more on AI efforts. Caterpillar (NYSE: CAT) dragged the Dow Jones lower with its 7.02% drop. The construction machinery manufacturer anticipates soft sales growth this year.
CACI International (NYSE: CACI) outshined GovCon Index peers and climbed 5.93% after reporting revenue and net income growth in Q3 fiscal 2024, not to mention the $3.5 billion contract awards. The IT solutions provider secured a $1.3 billion five-year task order yesterday from the Department of Defense for communications and IT support to the U.S. Africa Command and U.S. European Command.
Northrop Grumman rose 2.84% to $488.06, a six-month high. Like RTX (NYSE: RTX) and Lockheed Martin (NYSE: LMT) two days ago, the aerospace and defense company reported better-than-expected earnings and revenue in Q1 2024. Meanwhile, Textron (NYSE: TXT) tanked 9.69% to lead the 12 GCI decliners. In addition to reduced demand for its specialized vehicles and fuel systems, the defense contractor announced 1,500 job cuts under a restructuring plan.
The Commerce Department reported weaker economic growth to start the year, as evidenced by the 1.6% GDP annual rate in the first quarter. Economists predicted a 2.4% increase. Market analysts say the downshift in GDP and persistent inflation could lead to stagflation. The situation dims the chances of an interest rate cut soon.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,869.50 | 34.07 | 0.70% |
| Dow Jones Industrial Average | 38,085.80 | -375.12 | -0.98% |
| S&P 500 | 5,048.42 | -23.21 | -0.46% |
| NASDAQ | 15,611.76 | -100.99 | -0.64% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| CACI | 401.87 | 22.49 | 5.93% |
| NOC | 488.06 | 13.49 | 2.84% |
| TTEK | 192.92 | 3.63 | 1.92% |
| BA | 166.81 | 2.48 | 1.51% |
| GD | 284.9 | 3.79 | 1.35% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| CACI | 401.87 | 22.49 | 5.93% |
| NOC | 488.06 | 13.49 | 2.84% |
| LMT | 464.78 | 5.64 | 1.23% |
| GD | 284.9 | 3.79 | 1.35% |
| TTEK | 192.92 | 3.63 | 1.92% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| TXT | 84.9 | -9.11 | -9.69% |
| KTOS | 17.28 | -0.49 | -2.76% |
| BAESY | 67.3 | -1.69 | -2.45% |
| GIB | 103.14 | -1.76 | -1.68% |
| AVAV | 155.64 | -2.35 | -1.49% |
