Executive Mosaic’s GovCon Index declined slightly from its record high to close at $5,181.95 (-0.03%). Wall Street’s three major indexes rose sharply on strong tailwinds. The Dow Jones Industrial Average (+1.64%) added more than 650 points, while the S&P 500 (-1.11%) and Nasdaq Composite (-1.03%) ended their two-day slump.
NYSE activity was brisk as 83% or 1,612 stocks advanced before the weekend. 3M (NYSE: MMM), the top market mover, soared 22.99% after the Post-it maker reported strong quarterly earnings and higher guidance for 2024. Five of the Magnificent Seven stocks also recorded gains Friday.
The worst performer, DexCom (Nasdaq: DXCM), plummeted 40.66% from $107.85 to $64. The medical devices company reported lower-than expected sales in the second quarter and trimmed its full-year financial guidance by up to $300 million.
Advancers outnumbered decliners on the GovCon Index, 21 to nine. ICF (Nasdaq: ICFI), Mercury Systems (Nasdaq: MRCY), and four other GCI stocks gained more than 2%. Booz Allen Hamilton (NYSE: BAH) and L3Harris Technologies (NYSE: LHX) had the most significant drops among the losing bunch.
A published report the day before said the U.S. DOD Defense Human Resources Agency awarded ICF a multiple-award blanket purchase agreement. In the new award with a ceiling value of $1.4 billion, the global consulting and technology services provider will design, develop, migrate, and deploy cloud-based solutions to modernize the agency’s Defense Manpower Data Center.
According to Visible Alpha, Booz Allen’s share price declined because the earnings per share or EPS of $1.27 in Q1 fiscal 2025 was lower than analysts’ expectations of $1.43. Still, the engineering services firm reported 10.8% and 2.9% revenue and net income year-over-year increases compared to Q1 fiscal 2024. Deutsche Bank downgraded L3Harris Technologies to hold from buy.
On July 26, 2024, the U.S. Air Force awarded Raytheon, an RTX (NYSE: RTX) business, a $325 million ceiling increase modification to a previously awarded contract for the StormBreaker Small Diameter Bomb Increment II.
The second quarter earnings season is nearing its mid-point, and thus far, data from FactSet shows that 78% of S&P 500 companies reported actual EPS above estimates. Also, on Friday, the Commerce Department reported that June inflation rate dropped to 3% from 3.3% in May. Both results increase the chances of a rate cut in September.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,181.95 | -1.62 | -0.03% |
| Dow Jones Industrial Average | 40,589.34 | 654.27 | 1.64% |
| S&P 500 | 5,459.10 | 59.88 | 1.11% |
| NASDAQ | 17,357.88 | 176.16 | 1.03% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ICFI | 144.09 | 3.35 | 2.38% |
| MRCY | 35.34 | 0.79 | 2.29% |
| AVAV | 173.82 | 3.88 | 2.28% |
| BAESY | 65.3 | 1.33 | 2.08% |
| NOC | 480.3 | 9.73 | 2.07% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 480.3 | 9.73 | 2.07% |
| AVAV | 173.82 | 3.88 | 2.28% |
| LMT | 524.8 | 3.40 | 0.65% |
| ICFI | 144.09 | 3.35 | 2.38% |
| BA | 186.89 | 2.54 | 1.38% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAH | 139.84 | -13.74 | -8.95% |
| LHX | 229.41 | -13.86 | -5.70% |
| PSN | 76.52 | -1.23 | -1.58% |
| LDOS | 149.83 | -2.19 | -1.44% |
| KBR | 65.77 | -0.86 | -1.29% |
