Arab Today, arab today nasdaq breaks 15year record
Last Updated : GMT 03:13:23
Arab Today, arab today
Arab Today, arab today

Historic week for US stocks

Nasdaq breaks 15-year record

Arab Today, arab today

Arab Today, arab today Nasdaq breaks 15-year record

The Nasdaq composite index
New York - Arab Today

Fifteen years after its bubble exploded dramatically costing tens of thousands of hopeful tech millionaires their savings, the Nasdaq finally made its way back this week.

And this time, underpinning the market's new record are real earnings at reasonable price measures, suggesting investors need not fear a repeat of the dot-com crash of 2000.

The Nasdaq led Wall Street higher for the week through April 24, putting on 3.25 percent. Marking the long crawl back from a near-80 percent plunge, it pierced the previous record set on March 10, 2000 on Thursday by more than five points, closing at 5,056.06.

Then, with a flourish from both the old and new leaders of the New Economy (as it was heralded before the 2000 crash) -- Amazon, Microsoft and Google all surged on strong quarterly earnings reports -- the Nasdaq Composite added to that Friday with another 36 points, to end the week at 5,092.08.

Dragged up in its wake were the Dow Jones Industrial Average, which put on 1.43 percent to 18,080.14 for the week, and the broader S&P 500, up 1.76 percent, itself ending at a new high, by a fraction of a point.

"It's the return of the New Economy, but a New Economy that makes money," said Gregori Volokhine of Meeschaert Financial Services.

That was a reference to the more sane price-earnings multiples for the tech-heavy exchange today. Back in 2000, the p/e ratio was an unsustainable 190 times, mainly because the Nasdaq was full of new tech companies full of hopes and ideas but no earnings.

Today, the Nasdaq exchange is more mature, with a broader base of Internet, tech, biotechnology and pharmaceutical, and non-tech consumer goods companies all with proven earnings track records. The p/e ratio is around 25.

- Some cautions -

Even though it still loses money, Amazon, the online retailing power, showed investors in the first quarter that it could grow income by 15 percent, helped by its cloud services, the newest big thing in tech. That was enough to propel Amazon's shares up 14.8 percent on Friday.

Microsoft, a contender in the cloud computing sector, followed suit with a 10.5 percent gain and Google 3.3 percent -- all huge surges from companies valued at more than $200 billion (nearly $400 billion for Microsoft).

There were some cautions.

Company earnings and revenues have come in generally weaker, many reporting that the strong dollar and weak global growth has eroded overseas earnings.

FactSet reported Friday that of the 201 companies in the S&P 500 that have released first quarter earnings, sales have declined 3.5 percent from a year ago and earnings 2.8 percent.

It noted that when Apple, which was only the 45th biggest company on the Nasdaq in March 2000 and now ranks the world's largest, reports on Monday, it will singlehandedly prop up overall market sales and earnings numbers.

"The blended earnings decline for the entire S&P 500 is -2.8 percent. Excluding Apple, the blended earnings decline for the S&P 500 would increase to -3.9 percent," FactSet said.

Tom Cahill of Ventura Wealth Management said the market has held up in the first quarter because companies were hitting already understated earnings forecasts.

"The earnings expectations for the first quarter were lowered enough that companies are easily meeting expectations. It puts enough of a floor in the market to sustain it," he said.

With US economic growth sluggish and the rest of the world in a real slump, some analysts say even the prospects of extended ultra-low interest rates from the Federal Reserve might not be enough to take US stocks to a higher stage.

"I think the market is going to stall... the indexes are overvalued," said Hugh Johnson of Hugh Johnson Advisors.

"Even if earnings are good, valuations still matter."
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today nasdaq breaks 15year record Arab Today, arab today nasdaq breaks 15year record

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 09:22 2017 Monday ,20 February

China's huge debt poses big headache for central bank

GMT 18:23 2017 Sunday ,19 February

Darwesh vows to provide job opportunities for youth

GMT 12:10 2017 Sunday ,19 February

Welcomes the F&B solution of the future

GMT 10:06 2017 Friday ,17 February

South Korea's Hanjin Shipping declared bankrupt

GMT 09:26 2017 Friday ,17 February

Samsung's history tainted by run-ins with the law

GMT 09:20 2017 Friday ,17 February

Samsung heir arrested in corruption probe

GMT 10:26 2017 Thursday ,16 February

Dollar, equities stutter in Asia after Trump rally
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday