The NASDAQ Composite (INDEXNASDAQ:.IXIC) is an American stock exchange and contains stocks listed on the NASDAQ stock exchange (similar to but different from the New York Stock Exchange, NYSE). It is broader than the other mentioned indexes. The exchange becomes more relevant as it is busier than NYSE and it is the home to a lot of technology stocks. Dow Jones Industrial Average, DJIA, tracks the largest American businesses and the S&P 500 tracks a broad section of big American businesses, while NASDAQ grabs all sorts of market activity - big companies, small companies, up and corners, etc.
On December 27, 2016, US stocks ended slightly higher, and started the last trading week of the 2016 year on a positive note with the Nasdaq Composite coming to a closing record. The index reached a value which was a fresh all-time intraday high in morning trade and outdid 5,500 for the first-time ever. Share of tech giant Apple gained 0.6% while the iShare Nasdaq Biotechnology ETF (IBB) erased some gains. The momentum continued and the US stock again rebounded to close higher on January 11, 2017 following President-elect Donald Trump’s press conference. Nasdaq notched its fifth straight record close in row. The Nasdaq composite index finished up 11.83 points of 0.2% at 5,563.65, its fifth record close in as many sessions and the seventh straight day of gains for the tech- heavy index.
2016 start was not so good for technology stock but the performance of iShare US Technology exchange –traded fund indicates that they have recovered quickly and finished the year strong. Tech-related stocks look ready to continue their run higher and inflate NASDAQ to even higher levels. NASDAQ 100 Technology Sector (INDEXNASDAQ: NDXT) index delivered 3.9% in this year to date (as of January 13, 2017) and rallied over 20.7% in the last six months.
Additionally, September and October were two of the most active months for IPOs in the US. In the fall, Nasdaq welcomed 30 IPOs including two unicorns, Nutanix and Coupa Software. The performance of technology IPOs were relatively strong. Nutanix Inc (NASDAQ: NTNX) generated 6.35% in the last four weeks alone (as of January 13, 2017). Furthermore, the rally is expected to continue with many technology IPOs (about 30) to enter market in 2017 with some high-profile names.
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.