Executive Mosaic’s GovCon Index rose 1.12% to $5,111.02 for its second-best start to a week. Wall Street was all green following an IT outage Friday, a political development over the weekend, and the first rate cut in China on Monday. The Nasdaq Composite (+1.58%) and S&P 500 (+1.08%) posted significant gains, while the Dow Jones Industrial Average (+0.32%) ticked higher.
Magnificent Seven members NVIDIA (Nasdaq: NVDA) and Tesla (Nasdaq: TSLA) led the comeback of mega-cap tech and chip stocks. Dow Jones component Verizon (NYSE: VZ) sunk 6.01% due to lower-than-expected quarterly results. CrowdStrike (Nasdaq: CRWD), the cause of the tech havoc, plunged 13.46%.
On the GovCon Index, 27 stocks powered Monday’s advance. V2X (NYSE: VVX) and Tetra Tech (Nasdaq: TTEK) led the surge. Only Boeing (NYSE: BA), Palantir Technologies (NYSE: PLTR) and Lockheed Martin (NYSE: LMT) finished in red territory.
V2X secured a $48.5 million indefinite-delivery/indefinite-quantity contract with the U.S. Army for the Gateway Mission Router. The GMR integrates information and assured communications in multiple domains to create a fully converged operational environment for warfighters on the battlefield.
AeroVironment (Nasdaq: AVAV) rose 2.55% to end its four-day losing streak. The unmanned aerial vehicle manufacturer established and introduced its new government relations team headed by Church Hutton, senior vice president of Government Relations. AeroVironment aims to broaden its reach and strengthen its presence in Washington, D.C.
Also, on Monday, the U.S. Navy awarded General Dynamics (NYSE: GD) Mission Systems an $88.5 million modification to an IDIQ contract to procure, manufacture, test and deliver AN/USC-61 Digital Modular Radio systems, including high-frequency distribution amplifier group components, and system spare parts.
Market analysts expect strong fundamentals and corporate earnings to drive stocks, notwithstanding political uncertainties. They forecast the earnings growth of S&P 500 companies to be a little below 12%, the strongest growth rate since 2021.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 5,111.02 | 57.16 | 1.12% |
| Dow Jones Industrial Average | 40,415.44 | 127.91 | 0.32% |
| S&P 500 | 5,564.41 | 59.41 | 1.08% |
| NASDAQ | 18,007.57 | 280.63 | 1.58% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| VVX | 52.66 | 2.26 | 4.48% |
| TTEK | 208.34 | 6.36 | 3.15% |
| AVAV | 168.42 | 4.19 | 2.55% |
| MRCY | 34.15 | 0.76 | 2.28% |
| KTOS | 21.4 | 0.43 | 2.05% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| CACI | 452.24 | 6.74 | 1.51% |
| TTEK | 208.34 | 6.36 | 3.15% |
| CW | 281.34 | 4.30 | 1.55% |
| AVAV | 168.42 | 4.19 | 2.55% |
| LHX | 238.14 | 3.37 | 1.44% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| BA | 178.9 | -0.77 | -0.43% |
| PLTR | 28.46 | -0.12 | -0.42% |
| LMT | 474.59 | -0.33 | -0.07% |
| NOC | 438.1 | 0.16 | 0.04% |
| ACN | 331.51 | 2.32 | 0.70% |
