Leading up to the result of the Fed’s two-day meeting today, US equity markets have been flat. First quarter US GDP growth figures were reported by the Bureau of Economic Analysis at 0.1%. In addition, the ADP National Employment Report for April shows 220,000 new workers were added to the domestic private labor market. “The monthly Fed bond buying program is expected to be reduced by $10B to $45B at the conclusion of today’s Federal Reserve meeting. The 0.1% first quarter US GDP growth figure was lower than analyst expectations, in part due to the unusually cold winter,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 1.41% since Friday’s close. Year-to-date performance for the index is up 0.26% after being up north of 20% at the end of February.
- PHLX GOLD/SILVER SECTOR (XAU) was down 0.72% as of noon on Wednesday. The price of gold is currently $1,293 per ounce, down $7 this week.
- NASDAQ CLEAN EDGE GREEN ENERGY (CELS) is down 3.18% this week. Linear Technology, First Solar, Tesla Motors, Cree and SolarCity are the five largest holdings in the index.
INDEX TO WATCH
- The price of Kansas Wheat futures has grown 34% since the end of January rising to $8.07. Track the space by monitoring the NASDAQ Commodity Kansas Wheat Index ER (NQCIKWER). The index is up 3.0% this week.
US equity markets have rallied during the last two weeks, to levels unseen since the beginning of April. First quarter US GDP and ADP employment reports are scheduled to be released next week. US GDP figures are expected to be between 1% and 1.5%.
“US equity markets have rebounded over the last two weeks heading into earnings for some of the biggest companies listed on NASDAQ including Apple, Facebook, Amazon, among others,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ BIOTECHNOLOGY INDEX (NBI) was up 4.66% since Thursday’s close. Year-to-date performance for the index is up 2% after being up north of 20% at the end of February.
- PHLX GOLD/SILVER SECTOR (XAU) was up 2.54% as of noon on Wednesday. The price of gold is currently $1,283 per ounce, down $10 this week.
- NASDAQ-100 (NDX) was up 1.03% this week. 32 companies from the index are reporting earnings this week. Apple, Facebook and Qualcomm, among others, report today. 14 of the 32 are reporting tomorrow.
INDEX TO WATCH
- The price of coffee futures has exploded since the end of January rising to over $215 increasing from $120. Track the space by monitoring the NASDAQ Commodity Coffee Index ER (NQCIKCER). The index is up 4.6% this week and 87% year-to-date.
The following article was written by Faye Kilburn and published in Inside Market Data on April 7, 2014.
Though there are almost a hundred mainstream index providers in the industry today, the market remains dominated by a small and elite group of providers—MSCI, S&P Dow Jones Indices, Russell Indexes and FTSE Group. With the industry clamoring for change and innovation, Faye Kilburn examines the barriers to greater adoption of alternative providers.
The fees charged by index providers have risen sharply over recent years, partly due to the increase in complexity of indexes for benchmarking, and partly due to the rise of exchange-traded funds. These hikes, combined with the proliferation of new license types covering areas such as non-display usage, have led many firms to question whether the current cost of indexes is at all reflective of their value.
Read the entire article here.
Greek long-term bonds are being issued for the first time since its bailout in 2010 with the sale expected to be finalized Thursday. Estimates put the value of the 5-year bonds at a minimum of €500M. US and global equity markets remain flat this week with negative returns in the 40 basis point range.
“Greece’s issuance of its first long-term bonds since its bailout is a big step for the country and may be a sign the country’s economy is turning a corner,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ BIOTECHNOLOGY INDEX (NBI) was up 2.53% since Friday’s close. Year-to-date performance for the index is up 2% after being up north of 20% at the end of February.
- PHLX GOLD/SILVER SECTOR (XAU) was up 1.26% as of noon on Wednesday, from the most recent Friday close. The price of gold is currently $1,305 per ounce, up $2 this week.
- NASDAQ INTERNET (QNET) was up 1.74% this week. eBay, Amazon, Priceline, Facebook and Google are the five biggest holdings in the index.
INDEX TO WATCH
- The price of coffee futures has exploded since the end of January, increasing from $120 to $192 today. Track the space by monitoring the NASDAQ Commodity Coffee Index ER (NQCIKCER). The index is up 6% this week and 75% year-to-date.
NASDAQ OMX and Chaikin Analytics, LLC announced the launch of three NASDAQ Chaikin Power Indexes today: the NASDAQ Chaikin Power US Large Cap Index (NQULCHK), the NASDAQ Chaikin Power US Small Cap Index (NQUSCHK), and the NASDAQ Chaikin Power US Dividend Achievers Index (NQDACHK). These new indexes are rules-based, quantitatively enabled investment strategies designed to outperform their peers and the market based on the Chaikin Power Gauge, a multi-factor quantitative model.
Referred to as enhanced alpha indexes, the NASDAQ Chaikin Power Indexes filter the NASDAQ US 300 Index, NASDAQ US 1500 Index and NASDAQ US Broad Dividend Achievers Index. The NASDAQ Chaikin Power Indexes are available to fund managers, advisors and investors for licensing and implementation through separately managed accounts and ETFs.
Read more here.
The NASDAQ OMX Axioma Equity-Commodity Oil Index is March's top performer at 4.6% and the NASDAQ Biotechnology Index is the worst performer of March at -10.7%. Get a quick overview of NASDAQ OMX Index performance data for our top 50 most watched indexes here.
To watch a replay of our NASDAQ Composite Web Seminar: A 14-Year Retrospective, please click here.
In the final days of 1999, the NASDAQ Composite (COMP) index reached the 4000 milestone for the first time since its creation in 1971. What, in retrospect, became known as the "tech" or "dot-com" mania was well underway. By early March 2000, the composite would reach an all-time peak of 5049, after which it began its precipitous decline. Now, some 14 years later, the NASDAQ Composite has climbed above the 4000 mark again. But in the intervening years, the index composition and valuation have experienced dramatic changes in many large and subtle ways. Read more about the changes in the NASDAQ Composite components, valuations and weightings since the burst of the tech bubble 14 years ago. Submit the form below to receive your complimentary copy of the NASDAQ Composite Whitepaper now:
The ADP National Employment Report for March shows 191,000 new workers were added to the domestic private labor market. Following the positive jobs report, global equity markets responded in a big way, with returns north of 1.5% this week. “Following the positive jobs report from ADP for the month of March, global and US equity markets are up between 1.5% and 2% this week heading into the beginning of the second quarter,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ BIOTECHNOLOGY INDEX (NBI) was up 4.99% since Friday’s close. Year-to-date performance for the index is up 6.3%.
- PHLX GOLD/SILVER SECTOR (XAU) was flat 0.33% as of noon on Wednesday, from the most recent Friday close. The price of gold is currently $1,292 per ounce, down $2 this week.
- NASDAQ CLEAN EDGE GREEN ENERGY (CELS) was up 4.56% this week. Tesla, one of the core holdings of the index, has been in the news quite a bit this week with the announcement of a $5B battery factory set to be built in four states.
INDEX TO WATCH
- The price of natural gas has bounced around since early November 2013, starting under $3.60 and rising to $4.34 today. Track the space by monitoring the NASDAQ Commodity Natural Gas Index ER (NQCINGER). The index is down 3% this week but up 15% year-to-date.
