Executive Mosaic’s GovCon Index gained 0.21% to $4,879.91 and stayed positive before the weekend. A tech rally lifted Wall Street Friday and blockbuster earnings of two “Magnificent Seven” stocks aided Nasdaq’s 2.02% climb. The blue-chip Dow Jones (+0.40%) and S&P 500 (+1.02%) finished higher.
Alphabet (Nasdaq: GOOGL) popped 10.22% after it reported a 57.7% year-over-year increase in net income to $23.66 billion in Q1 2024. The Google parent company also joined the $2 trillion market cap club and declared dividends for the first time ever. Microsoft (Nasdaq: MSFT) rose 1.82% after presenting double-digit top and bottom-line growth in Q3 fiscal 2024.
Kratos Defense & Security Solutions (Nasdaq: KTOS), Palantir Technologies (NYSE: PLTR), and L3Harris Technologies (NYSE: LHX) led 21 GovCon Index advancers. Northrop Grumman (NYSE: NOC) declined the most, while CGI Group (NYSE: GIB) was flat. Kratos jumped 9.14% following Raymond James’ upgrade from outperform to strong buy. The wealth management firm forecasts the stock price to rise 50% in one year due to high demand for its products as global conflicts continue.
AI stock Palantir picked up steam after tech giants Meta Platforms (Nasdaq: META), Alphabet, and Microsoft announced higher artificial intelligence spending. L3Harris gained 3.46% due to strong revenue growth and higher operating margin in Q1 2024. The defense contractor increased its profitability guidance but reduced its workforce by 5% in early April.
On Friday, the U.S. Air Force awarded Northrop Grumman Systems a $387.5 million definitized contract action for Global Hawk / RQ-4 aircraft sustainment. The contract provides for contractor logistics support services. AeroVironment (Nasdaq: AVAV) obtained a $32.1 million modification contract for the Switchblade Weapon System with the U.S. Army.
Investors focused on corporate earnings following the Commerce Department’s report showing that inflation remained high in March. The personal consumption expenditures price index, the U.S. Fed’s preferred inflation gauge, rose to 2.7% from 2.5% in February. The core PCE, which excludes food and energy, was the same at 2.8%. Market analysts say the progress in bringing down inflation has stalled. With the latest reading, expect the U.S. Federal Reserve to delay rate cuts.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,879.91 | 10.41 | 0.21% |
| Dow Jones Industrial Average | 38,239.66 | 153.86 | 0.40% |
| S&P 500 | 5,099.96 | 51.54 | 1.02% |
| NASDAQ | 15,927.90 | 316.14 | 2.02% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| KTOS | 18.86 | 1.58 | 9.14% |
| PLTR | 22.52 | 0.81 | 3.73% |
| LHX | 214.54 | 7.18 | 3.46% |
| TXT | 86.51 | 1.61 | 1.90% |
| AVAV | 158.09 | 2.45 | 1.57% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LHX | 214.54 | 7.18 | 3.46% |
| CACI | 404.87 | 3.00 | 0.75% |
| AVAV | 158.09 | 2.45 | 1.57% |
| TXT | 86.51 | 1.61 | 1.90% |
| KTOS | 18.86 | 1.58 | 9.14% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| NOC | 480.45 | -7.61 | -1.56% |
| LMT | 461.29 | -3.49 | -0.75% |
| ACN | 308.01 | -0.99 | -0.32% |
| RTX | 101.41 | -0.30 | -0.29% |
| MMS | 80.43 | -0.20 | -0.25% |
