Executive Mosaic’s GovCon Index closed positive for the second straight day, rising 0.96% to $4,954.32. Wall Street sustained momentum from mid-week but eventually retreated due to a tech selloff. Only the Dow Jones Industrial Average (+0.08%) stayed green.
The Nasdaq Composite (-1.95%) registered it worst performance since April following the slump of mega-cap tech stocks, while the S&P 500 (-0.88%) fell from its record high. All Magnificent Seven stocks declined, pulling the tech-heavy index down. NVIDIA (Nasdaq: NVDA) and Tesla (Nasdaq: TSLA) sunk 5.57% and 8.44%, respectively.
On the GovCon Index, 27 of 30 components advanced, led by the substantial gains of Mercury Systems (Nasdaq: MRCY), Fluor Corporation (NYSE: FLR), and V2X (NYSE: VVX). Palantir Technologies (NYSE: PLTR) lost 2.74%, while Lockheed Martin (NYSE: LMT) and AeroVironment (Nasdaq: AVAV) inched lower.
Mercury Systems signed an agreement with the U.S. Navy to advance sensor processing technologies. Under the $13.2 million agreement, Mercury will develop a next-generation RF System-in-Package that integrates the newest commercial chips from the largest semiconductor provider within a lighter or smaller footprint.
Fluor hit a new 52-week high of $46.78 in intraday trading before finishing at $46.55. Truist Financial, a financial services company, raised its price target for FLR to $54. Other research analysts gave the stock outperform or buy ratings.
Palantir Technologies fell from its 52-week high of $28.59 to $27.64, although some analysts believe the stock is well-positioned to rise due to its Artificial Intelligence Platform. The U.S. Army awarded Lockheed Martin’s company, Sikorsky, a $251.5 million modification to a contract for the UH-60M aircraft.
Also, on Thursday, the Bureau of Labor Statistics released the latest Consumer Price Index, showing the annual inflation rate dropped from 3.3% in May to 3% in June. It was the first time since May 2020 that the monthly inflation rate declined. Core CPI, which excluded food and energy costs, rose 0.15 monthly, the smallest increase since April 2021. Some market analysts said the latest inflation readings improved the chances of a rate cut in September.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,954.32 | 47.46 | 0.96% |
| Dow Jones Industrial Average | 39,753.75 | 32.39 | 0.08% |
| S&P 500 | 5,584.54 | -49.37 | -0.88% |
| NASDAQ | 18,283.41 | -364.04 | -1.95% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| MRCY | 31.29 | 1.44 | 4.82% |
| FLR | 46.55 | 1.78 | 3.98% |
| VVX | 49.45 | 1.53 | 3.19% |
| CG | 42.6 | 1.10 | 2.65% |
| MMS | 87.3 | 1.99 | 2.33% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| NOC | 432.02 | 5.78 | 1.36% |
| CACI | 434.11 | 5.07 | 1.18% |
| HII | 251.7 | 5.02 | 2.04% |
| LHX | 230.34 | 3.07 | 1.35% |
| ACN | 297.99 | 2.55 | 0.86% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| PLTR | 27.64 | -0.78 | -2.74% |
| LMT | 460.38 | -0.63 | -0.14% |
| AVAV | 175.34 | -0.11 | -0.06% |
| PSN | 79.42 | 0.02 | 0.03% |
| CW | 281.76 | 0.18 | 0.06% |
