Morning Research Note: Portfolio Gains 0.02% as CRWD Leads Gainers and Defense Sector Slides

The portfolio gained 16.76 in daily PL, a 0.02% increase, as of the 09:30 session. CrowdStrike (CRWD) led all gainers with an 85.49% rise, followed by EZPW at 76.68% and CXW at 55.05%. On the flip side, VERI, EH, and QFIN were the top losers, dropping 90.18%, 80.95%, and 80.03% respectively.

Sector performance showed stark contrasts. The defense sector, where the portfolio holds seven stocks, posted an average loss of 72.54%, with a total sector PL of -507.81. This was the steepest decline among all sectors. In contrast, the border sector gained 35.45 on average, addiction 30.16, and surveillance 13.92, providing positive tailwinds for portions of the portfolio.

Despite the broader defense sector sell-off, RTX managed to rise 14.54%, outperforming as contract backlog news aligned with its quarterly report. GEO also surged 40.08% following news of a Department of Homeland Security contract extension for the Aurora detention facility. Meanwhile, Microsoft continued its positive momentum with a 2.12% gain after beating revenue and earnings expectations on its Azure business and raising growth guidance.

Northrop Grumman (NOC) is down 16.20% ahead of its Q3 earnings release, while Axon (AXON) has fallen 45.38% today, following recent reports of federal contract wins as well as a specific contract issue in Tuolumne County. General Dynamics (GD) closed slightly negative, consistent with market sentiment toward defense earnings.

Overall, the portfolio remains well-positioned with a high cash balance of 88,992.06 and a diverse set of sectors contributing to resilience amid mixed defense headlines.

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