The FAANGs — with the exception of Apple Inc., which is not on the Entrepreneur index — have roared back to life after suffering huge declines towards the end of last year.
January 8, 2019 3 min read
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The stock market shook off a late morning malaise to post another strong gain today.
The Dow and Nasdaq Composite indexes were both up more than one percent and the S&P 500 index gained 0.97 percent, marking the first three-day win streak for the market since November. The Entrepreneur Index™ rose 1.3 percent with only eight of sixty stocks in the red.
Investors continue to be optimistic about a potential trade agreement between the U.S. and China. The two countries have set a March deadline to strike a deal before more tariffs go into effect. Oil is also riding the optimism. Up 2.49 percent today, it has risen 17 percent since Christmas Eve and is on the verge of breaking back through the $50 level.
Technology stocks were generally higher today, with all four FAANG stocks on the Entrepreneur Index™ posting gains. Facebook was up the most, rising 3.26 percent. The FAANGs — with the exception of Apple Inc., which is not on the Entrepreneur Index™ — have roared back to life after suffering huge declines toward the end of last year. All of them were in bear market territory at Christmas-time but have surged by double digits since then. Netflix has had the most dramatic rise, up 37 percent since Christmas Eve.
Other tech stocks posting strong gains today included Verisign (3.65 percent), salesforce.com (2.49 percent) and TripAdvisor Inc. (3.49 percent). Semiconductor manufacturer NVIDIA Corp., down 2.49 percent, was the only tech stock of thirteen on the index to post a loss on the day.
Shares of pipeline manager Kinder Morgan gained 3.32 percent today and are up 17 percent from a 52-week low set on Dec. 26. The company has two natural gas pipelines coming online this year and next to transport gas from the Permian basin to the Gulf Coast and to major energy users.
Other strong gains were posted by medical device maker Boston Scientific Corp. (2.79 percent), manufacturer Danaher Corp. (2.55 percent), acute-care facilities manager Universal Health Services (3.13 percent), and casino-operator Wynn Resorts(3.13 percent). Food makers Tyson Foods and J.M. Smucker Company were also up 2.68 percent and 2.58 percent respectively.
The real estate investment trusts all posted good gains, as optimism about the economy outweighed a strong tick up in interest rates today. Commercial property manager SL Green Realty Corp. had the biggest gain on the Entrepreneur Index™, rising 4.03 percent.
Only eight stocks on the index were down today. Clothing makers/retailers Gap Inc. and L Brands both gave back most of the four percent plus gains they had yesterday. Gap was down 5.08 percent, the biggest decline on the Entrepreneur Index™, while L Brands fell 2.32 percent. Specialty retailer Bed Bath & Beyond was also down 2.48 percent.
Intercontinental Exchange, which owns the New York Stock Exchange, was down again today, falling 1.68 percent. The stock was down three percent yesterday after a group of large Wall Street banks and investors announced a plan to launch a new exchange to compete with markets like the NYSE.
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.