The Wall Street Journal reported yesterday that inflation was in line with expectations, which quelled apprehension the Fed would soon be forced to raise interest rates. Additionally, Janet Yellen, Fed Chair, recently remarked that interest rates would remain low because we have to “deal with a very real problem, namely the economy is operating significantly short of its potential.” According to economic data though, stocks have broadly surged this year. Today, market reports show that technology and biotech securities gained on upbeat quarterly earnings, exemplified by the 1.5% rise in Apple Inc.’s shares, which beat its forecast.
“This is the biggest week of the quarter for NASDAQ-100 companies announcing earnings, with more than half the Index by weight reporting. Some notable earnings announcements today and tomorrow include Facebook, Amazon, Starbucks, and Baidu,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 3.14% since Friday’s close. Year-to-date performance for the index is up 14% after being up above 20% at the end of February. Biogen is up over 11% this week after beating earnings today.
- NASDAQ-100 (NDX) was up 0.60% as of noon on Wednesday. Qualcomm, Facebook and Intel all had returns north of 2%, specifically, returns were 3.14%, 3.10% and 2.14%, respectively.
- PHLX OIL SERVICE SECTOR (OSX) was up 1.33% as of noon on Wednesday. The price of crude oil is $103.13 per barrel, down $3 in the past month.
INDEX TO WATCH
- The NASDAQ International Multi-Asset Diversified Income Index (NQMAXUS) consists of 126 securities within five asset classes, including: equities, REITs, preferreds, infrastructure and fixed income. Year-to-date, the index has outperformed the NASDAQ Global Ex-US Index while producing an annual yield of close to 5%.