Executive Mosaic’s GovCon Index gained 0.32% to $4,918.38 despite 18 constituents closing in red territory. Wall Street’s main indexes declined following the retreat of tech stocks. The Nasdaq Composite fell 1.65%, the Dow Jones Industrial Average (-1.04%) shed more than 400 points, and the S&P 500 (-1.02%) tumbled.
Mega-cap Apple (Nasdaq: AAPL) fell 2.84% after Counterpoint Research reported that iPhone sales in China fell 24% year-over-year in the first six weeks of 2024. About 2,056 Nasdaq components, or 64%, pulled the tech-heavy index down. Also, on Tuesday, eight of 11 S&P 500 primary sectors and 63% of NYSE stocks declined.
On the GovCon Index, AeroVironment (Nasdaq: AVAV) and V2X (NYSE: VVX) had explosive performances. The former soared 27.94% to $167.15, while the latter jumped 12.6% to lead 12 gainers. Top decliner Mercury Systems (Nasdaq: MRCY) sunk 2.5%.
Besides the fat capital gain, AeroVironment hit an all-time high of $171.67 during trading. The robotic and uncrewed aircraft and ground systems provider reported a record revenue of $186.6 million in Q3 fiscal 2024. Its net income for the quarter reached $13.88 million compared to the $676,000 net loss in Q3 fiscal 2023.
V2X popped after reporting a strong finish in fiscal 2023. The company provides facility and logistics services to the U.S. government, as well as information technology mission support. In Q4 fiscal 2023, revenue increased 6.4% to a record $1.04 billion. Because of the $13 billion backlog at year-end, the future revenue potential is solid.
Also, on Tuesday, the U.S. Air Force awarded General Dynamics (NYSE: GD) Mission Systems a $239.3 million ceiling, indefinite-delivery/indefinite-quantity contract. This latest contract is for the U.S. Battlefield Information Collection and Exploitation System.
Regarding rate forecasts, the federal funds rate trading data shows a less than 34% chance the Feds will hold rates steady until July.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Average | 4,918.98 | 15.75 | 0.32% |
| Dow Jones Industrial Average | 38,585.19 | -404.64 | -1.04% |
| S&P 500 | 5,078.65 | -52.30 | -1.02% |
| NASDAQ | 15,939.59 | -267.92 | -1.65% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| AVAV | 167.15 | 36.50 | 27.94% |
| VVX | 43.51 | 4.87 | 12.60% |
| KBR | 61.72 | 0.95 | 1.56% |
| BAESY | 65.95 | 0.82 | 1.26% |
| FLR | 36.85 | 0.27 | 0.74% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| AVAV | 167.15 | 36.50 | 27.94% |
| VVX | 43.51 | 4.87 | 12.60% |
| KBR | 61.72 | 0.95 | 1.56% |
| BAESY | 65.95 | 0.82 | 1.26% |
| BA | 201.14 | 0.60 | 0.30% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| MRCY | 28.83 | -0.74 | -2.50% |
| ACN | 376.88 | -6.83 | -1.78% |
| HII | 291.33 | -5.10 | -1.72% |
| ICFI | 154.52 | -2.49 | -1.59% |
| GIB | 114.73 | -1.32 | -1.14% |
