Executive Mosaic’s GovCon Index reversed course after two positive days, falling 1.52% to $5,105.57. Big-tech names, particularly the Magnificent Seven, sent the Nasdaq Composite (-3.64%) crashing on Wednesday. The S&P 500 (-2.31%) also went into a tailspin, while the Dow Jones Industrial Average (-1.25%) shed 504 points.
Tesla (Nasdaq: TSLA) plunged 12.33% after the electric vehicle maker showed lower profits in Q2 2024, along with sluggish sales. Alphabet (Nasdaq: GOOGL) dropped 5.04%, its most significant one-day decline since January. Google’s parent company reported higher AI spending and diminished YouTube advertising revenue in the second quarter.
Around 81% of NYSE stocks closed in the red zone, although AT&T (NYSE: T) rose 5.22% and survived the tech-induced selloff. Home energy solutions provider Enphase Energy (Nasdaq: ENPH) was the best performer on the S&P 500 Index with +12.8%.
GovCon Index had only one gainer mid-week. Lockheed Martin (NYSE: LMT) climbed 2.77% to repeat as the GCI’s top performer following Tuesday’s 5.63% gain. Palantir Technologies (NYSE: PLTR) and Jacobs (NYSE: J), from the 29 losers, declined 7.67% and 5.52%, respectively.
Lockheed hiked its outlook for 2024 and expects to meet the delivery target of 75 to 110 F-35 jets this year. TD Cowen upgraded its rating for Lockheed Martin from hold to buy, while analysts at Wells Fargo (NYSE: WFC) and Baird raised their price targets for the defense stock.
General Dynamics (NYSE: GD) declined 3.32%, notwithstanding the 18% and 21.6% year-over-year increases in Q2 2024 revenues and net earnings to $11.97 billion and $905 million compared to Q2 2023. Phebe Novakovic, chairman and CEO of General Dynamics and nine-time Wash100 awardee, said the defense businesses continue to grow because of increased demand in the current threat environment.
RTX’s (NYSE: RTX) Raytheon signed a contract with propulsion technology company Avio to develop solid rocket motor solutions and build a more resilient U.S. defense industrial base. Pratt & Whitney, another RTX business, announced receiving more than 11,000 geared turbofan, or GTF, orders and commitments thus far in 2024.
A storm hit U.S. markets Wednesday. The tech rout wiped off more than $750 billion from the collective market caps of the Magnificent Seven. Still, analysts maintain a positive earnings outlook for mega-cap tech stocks despite ballooning AI investments.
Meanwhile, across the border, the Bank of Canada cut its policy rate to 4.5%, the second time this year. The U.S. Federal Reserve has yet to act, but analysts expect the first cut in September.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,105.57 | -77.46 | -1.52% |
| Dow Jones Industrial Average | 39,853.87 | -504.22 | -1.25% |
| S&P 500 | 5,427.13 | -128.61 | -2.31% |
| NASDAQ | 17,342.41 | -654.94 | -3.64% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LMT | 515.2 | 13.91 | 2.77% |
| NOC | 442.12 | -0.18 | -0.04% |
| RTX | 104.83 | -0.14 | -0.13% |
| GIB | 107.09 | -0.41 | -0.38% |
| ACN | 328.68 | -1.65 | -0.50% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LMT | 515.2 | 13.91 | 2.77% |
| RTX | 104.83 | -0.14 | -0.13% |
| NOC | 442.12 | -0.18 | -0.04% |
| GIB | 107.09 | -0.41 | -0.38% |
| MRCY | 34.75 | -0.42 | -1.19% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 26.6 | -2.21 | -7.67% |
| J | 142.93 | -8.35 | -5.52% |
| FLR | 47.16 | -2.24 | -4.53% |
| BAH | 154.09 | -6.20 | -3.87% |
| ICFI | 139.61 | -5.50 | -3.79% |
