Continuing jobless claims were lower than expected, while initial claims remained high but flat over the past week. A positive sign as we head into the Thanksgiving holiday was personal spending in October increasing by 0.2% versus a prior month decrease of -0.2%. Durable goods orders increased at a faster pace of 0.4% beating expectations of a decrease of -0.6%.
Worries remain over crude oil’s continued slide, breaking through a floor of $74/barrel on WTI contracts. OPEC is considering action on supply where oil ministers may decide to cut production when they meet on November 27th as oil falls near 2010 levels. Meanwhile, gold pared yearly losses to be almost flat for the year near the $1200/oz level.
“We are seeing cautiously positive indicators heading into the crucial holiday shopping season. Much remains to be seen as concerns over crude oil and overall high market volatility are paring expectations” said Nasdaq Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ CHINA INDEX (NQCN) is up 3.77% since Friday’s close. Year-to-date performance for the index is up 2.39%.
- NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 2.23% since Friday’s close. Year-to-date performance for the index is up 32.25%.
- NASDAQ CLEAN EDGE GREEN ENERGY (CELS) is up 1.48% since Friday’s close.
INDEX TO WATCH
- The NASDAQ Global Oil & Gas Index (NQG0001) follows the general oil and gas industry and includes securities from developed and emerging markets. The current number of companies in the index is 479; the largest companies by float adjusted market cap are Exxon Mobil, Chevron, Royal Dutch Shell and BP. Possible policy changes in the coming days and weeks on supply may affect market volatility and create movement in this index.
We are excited to announce our continued expansion into Europe by partnering with Source to launch the first Europe-listed ETF to track the Nasdaq Biotechnology Index (NBI), the Source Nasdaq Biotechnology UCITS ETF (SBIO).
The Nasdaq Biotechnology Index (NBI) reflects the performance of over 100 biotechnology and pharmaceutical companies listed on The Nasdaq Stock Market. The 122 constituents range from global giants with diverse portfolios to smaller companies focused on a single treatment.
"Since the Nasdaq Biotechnology Index launched in 1993, it has evolved into a key industry benchmark for tracking the growth and performance of this increasingly important sector," Rob Hughes, Nasdaq head of index and advisor solutions said. "Nasdaq has been home to some of the world's most innovative companies in the Biotech sector and we are proud of our history and partnerships in the space. We are excited to team with another innovator, Source, who will introduce the Nasdaq Biotech Index to a European audience for the first time."
The Source Nasdaq Biotechnology UCITS ETF is denominated in USD and will trade on both the London Stock Exchange and the SIX Swiss Exchange. It is also registered for sale in Austria, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands and Norway.
To learn more about the Nasdaq Biotechnology Index, please visit the NBI Overview page.
In a responsive action, the prime minister of Japan, Shinzo Abe, called for new elections to save his party’s hopes of a tax stimulus to support Japan’s fragile economy. This helped to propel the US dollar to 7-year high against the Japanese Yen to settle at ¥117.69/USD with traders awaiting the release of the minutes from the US Federal Reserve meeting. Meanwhile, contracts on West Texas Intermediate crude recovered slightly, up 0.54% from last week’s 5-year lows, signaling a new support level for traders. In a drastic downturn of North American temperatures, heating oil futures are up 0.99% in just under 5 days of trading.
“An active response from Japan’s Abe is an encouraging sign for the world economy. We are entering a very delicate period for the US economy. Any positive news will help support markets going into the holiday season,” said John Jacobs, Executive Vice President of Nasdaq Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ OMX GLOBAL GOLD & PRECIOUS METALS (QGLD) is up 3.17% since Friday’s close. The price of gold is currently $1,177 per ounce, up $13 since last week.
- NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 2.35% since Friday’s close. Year-to-date performance for the index is up 30.2%.
- NASDAQ UTILITY SECTOR (UTY) is up 1.43% since Friday’s close. The index is up 19.02% YTD.
INDEX TO WATCH
- The PHLX Oil Service Sector (OSX) is comprised of corporations in the oil services industry. Currently, the index includes 15 securities, both domestic and international. This week, Halliburton announced the purchase of Baker Hughes, both components of OSX.
Nasdaq Aligns with BMO and Local Market Participants to Launch Two ETFs on Hong Kong Exchange
Nasdaq recently announced two of its indexes are the basis for ETFs recently launched by BMO on the Hong Kong Stock Exchange. The BMO Hong Kong Banks ETF (Stock Code: 3143) tracks the Nasdaq Hong Kong Banks Index, and the BMO Asia High Dividend ETF (Stock Code: 3145) tracks the Nasdaq Asia ex-Japan Dividend Achievers Index.
The BMO Asia High Dividend ETF launch is the latest example of continued innovation around the Nasdaq Dividend Achievers family.
“This milestone for our index business in Asia Pacific is due to our close collaboration with local asset managers, exchanges and other local participants, who understand investor demand and the local environment. This allows us to offer consumers new opportunities for their investment portfolios," Rob Hughes, Nasdaq head of Index Services, said.
In 2013, the Guotai NASDAQ-100 Exchange Traded Fund, the first-ever ETF in China based on a U.S. Index, listed in Shanghai, , along with similar ETFs in Korea, India and Japan – all tracking the NASDAQ-100, one of the most liquid, most followed indexes in the world. Over the past year, additional ETFs – based on Nasdaq Indexes - have launched in Asia, including The Mirae Asset Tiger Nasdaq BIO ETF (KRX: Ticker 203780), based on the Nasdaq Biotechnology Index, which launched earlier this year on the Korean Exchange.
“We have been honored to work with fantastic firms all around Asia to bring innovative products to market, and we expect to continue bringing more ETF-related opportunities to Asia, based on the Nasdaq Index Families, such as Dividend Achievers, Biotech, Semiconductor and other indexes that can provide opportunities for Asia-based investors,” Hughes said.
Nasdaq’s Global Index Group offers comprehensive index services, including design, calculation, administration, licensing, research, global visibility, data distribution and exchange-traded product (ETP) listing and licensing. Currently, there are more than 150 ETPs with $100 Billion in AUM tracking some of Nasdaq’s 41,000 Indexes.
United States September wholesale inventories announced today are a higher 0.3% versus a consensus increase of 0.2%. Comments from Bank of England governor Mark Carney echoed Fed officials’ concerns over European economic stagnation having a negative effect on global growth which would impede domestic growth of several key economic indicators in 2015. Meanwhile, contracts on West Texas Intermediate crude continued their slide breaking far below most traders’ $80 support level to settle around $77 per barrel. Year to date, domestic crude is down 21.4% and Brent crude down 26.7%, the lowest in over five years.
“Coupled with crude’s slide, concerns voiced by both Bank of England Governor Mark Carney and European Central Bank President Mario Draghi are having a negative effect on most investors’ outlook on domestic growth in 2015,” said John Jacobs, Executive Vice President of Nasdaq Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 1.48% since Friday’s close. Year-to-date performance for the index is up 30%.
- PHLX OIL SERVICE SECTOR (OSX) is down 0.55% since Friday’s close. The price of oil is currently $77 per barrel.
- PHLX Gold/Silver Sector (XAU) is down 1.49% since Friday’s close. The price of gold is currently $1,164 per ounce, down $6 since last week.
INDEX TO WATCH
- The NASDAQ Global Buyback Achievers Index (DRBG) is comprised of corporations that have effected a net reduction in shares outstanding of 5% or more in its latest fiscal year. Currently, the index includes 192 securities, both domestic and international. Over the last year, the index has produced return of 10.15% through the end of October.
Nasdaq’s Global Buyback Achievers™ Index is the basis for InvescoPowershares’ most recent ETF launch – the PowerShares Global Buyback Achievers UCITS ETF (symbol: BUYB). This marks the first product based on the successful Nasdaq Buyback AchieversTM Index family to launch in the UK and Europe.
“Nasdaq is proud to team with InvescoPowershares again to launch a product based on one of our most successful franchises,” said Rob Hughes, head of Index Services at Nasdaq. “Smart Beta indexes, and products linked to them, have provided more opportunities for investors to manage risk and diversify their portfolios. The Buyback concept has proven successful in identifying companies that have - through the use of share buybacks - delivered increased shareholder value and outperformance over the broader market.”
The launch is the latest example of continued innovation around the Nasdaq Buyback Achievers family. In May, InvescoPowershares launched the international version of this Index as an ETF in the US, The Powershares Nasdaq International Buyback Achievers Index ETF (symbol: IPKW).
The Nasdaq Global Buyback Achievers™ Index is comprised of securities from the Nasdaq US Buyback Achievers™ Index and the Nasdaq International BuyBack Achievers™ Index. The Nasdaq US Buyback Achievers Index is comprised of corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing twelve months and the Nasdaq International BuyBack Achievers Index is comprised of corporations that have effected a net reduction in shares outstanding of 5% or more in its latest fiscal year. The Index began on August 11, 2014 at a base value of 1,000.00.
For more information, contact Rob Hughes, Nasdaq Global Indexes, +1 212 231 5836.
The NASDAQ Biotechnology Index is October's top performer at 8.5% and the PHLX Gold/Silver Sector Index is the worst performer of October at -20.0%. Get a quick overview of Nasdaq Index performance data for our top 50 most watched indexes here.