Showing posts with label NASDAQ. Show all posts
Showing posts with label NASDAQ. Show all posts

Monday, 26 October 2015

Nasdaq may see record with Apple earnings

The Nasdaq 100 index, dominated by U.S. technology stocks, may set a record high next week, helped by good earnings from Apple Inc expected on Tuesday.

Technology shares led the U.S. stock market's recovery this week from its worst correction in four years in August, thanks to gains in Alphabet, Amazon and Microsoft, after the three companies reported better-than-expected earnings results.

The Dow Jones industrial average rose 0.9 percent to 17,646.70, the S&P 500 index recovered another 1.1 percent to 2,075.15, and the Nasdaq Composite closed the week up 2.27 percent at 5,031.86.

Shares across Asia, Europe and the Americas all climbed, boosted by Thursday's message from European Central Bank chief Mario Draghi that he was ready to increase the ECB's bond buying program, and by an interest rate cut by China's central bank.

Factors this coming week that may provide further support for U.S. stocks include a Federal Reserve policy meeting, which is not expected to raise interest rates yet, a report on U.S. third-quarter economic growth, and earnings from Apple.

The Nasdaq 100 index, including Apple, is just 1.5 percent below its year high and 4.0 percent from its record high back in March 2000.

Intel and Microsoft have seen their stocks recover more than 30 percent each since Aug. 25, while Amazon and Facebook rose 28 percent and 23 percent, respectively.

But the 'underperformer' among these companies has been Apple, up only 14.8 percent from its Aug. 25 close, less than the Nasdaq 100's 15.1 percent gain in that time.

In contrast to Microsoft, Facebook, Alphabet and Amazon, Apple shares did not post record or multi-year highs this week, even though it rose 7.2 percent, the largest weekly gain in a year.

On Tuesday, though, Apple is expected to report $51.1 billion in revenue, a 21.3 percent increase compared to the same quarter of last year. Earnings are seen at $1.879 per share.

"The bar has been raised a bit on its earnings report from where it was a week ago. The price action is telling you there's more optimism built into it," said Michael James, managing director of equities trading at Wedbush Securities in Los Angeles.

Options market action shows traders expect Apple shares to move roughly 5.0 percent by the end of next week. The average move for the stock the day after its report in the last eight quarters was 4.4 percent, up or down.

"Will an above-estimates from Apple and raised guidance help? Sure it will. But we could still get there without that happening," said James of the possibility of the Nasdaq 100 hitting a record.

"The power of the moves in some of these large cap tech stocks has been breathtaking," he said.

Chip makers were also among the top five percentage gainers in the Nasdaq 100 since the index closed at its 2015 low on Aug. 25, with SanDisk topping the list with a 70 percent jump on the back of a takeover bid from Western Digital.

The overwhelming leadership from established technology companies is a positive for this market move higher, according to Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

"The last time the Nasdaq 100 was the market leader a lot of it was speculative investments, but these (tech) companies actually return money to shareholders," she said.

"Tech deserves the leadership; the stock market is rewarding growth."

BIOTECH THE FLIP SIDE TO TECH STOCK LEADERSHIP

While technology stocks have led the market recovery, biotech stocks have been a drag on performance.

The Nasdaq Biotech Index is down 3.5 percent from its Aug. 25 close, and more than 20 percent below its year high. The three index components with the largest declines in market capitalization in the last eight weeks are Mylan, Illumina and Biogen.

"There has been a major rotation out of healthcare and into tech and it has continued after the recent earnings reports," said Wedbush's James, referring to strong results from Amazon, Microsoft and Alphabet.

Biotech stocks were shaken in September when U.S. presidential candidate Hillary Clinton first tweeted concerns about drug prices and the selling spread to other areas of the healthcare sector. Investors have been dumping shares of everything from hospitals to traditional pharmaceutical companies and insurers in recent weeks.

Since peaking in July, the Nasdaq Biotech Index has fallen 23 percent, the broad S&P Health Care Index has lost 12 percent and the S&P 500 Health Care Facilities index is down 31 percent.

Fund managers now say they expect regulatory threats on drug prices, disappointing earnings, higher interest rates that could hurt heavily indebted hospitals, and the loss of the initial Obamacare boost to business to all weigh on health sector stocks this year.
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Monday, 16 June 2014

Exclusive: Friedman could become Nasdaq CEO next year - sources

Adena Friedman, CFO of the Nasdaq OMX, speaks at the Reuters Exchanges and Trading Summit in New York March 31, 2010.
(Reuters) - Nasdaq OMX Group Inc lured back former Chief Financial Officer Adena Friedman as co-president with the understanding that she will succeed Chief Executive Bob Greifeld, possibly as soon as next year, sources familiar with the matter said. There is no written agreement that lays out such a timeline. And Greifeld, 56, who has been the financial market company's CEO for 11 years, could still stay until 2017, when his contract ends, the sources said. But one of the sources said that Friedman, 44, left her job as CFO of private equity firm Carlyle Group LP with the clear impression that she could become CEO within the next 12 to 18 months if she did not perform poorly. While her return, announced last month, was widely seen as positioning her to succeed Greifeld, the understanding on the expected timeline has not been reported previously. Nasdaq declined to comment or make Friedman available for an interview. Both Greifeld and the Nasdaq board were involved in hiring back Friedman, the sources said. Friedman, who had left for Carlyle three years ago after an 18-year career at Nasdaq, begins her new job on Monday. She will oversee the transatlantic exchange group's global corporate, information services, and technology solutions business lines, accounting for around 60 percent of Nasdaq's total revenue, which last year was $3.2 billion. Succession has been top of mind at Nasdaq over the past few years but a number of possible internal candidates have not been prepared to wait for Greifeld to step down, complicating such planning at the company. In September, sources told Reuters that the company had put together a list of external and internal candidates to succeed Greifeld. External candidates on Nasdaq's list included London Stock Exchange Group Plc CEO Xavier Rolet, Singapore Exchange Ltd CEO Magnus Bocker, TMX Group Ltd CEO Tom Kloet, and former CME Group Inc CEO Craig Donohue. CEO BOOT CAMP In November, Eric Noll, who headed trading operations at the exchange and was seen as the top internal candidate for the job, left to become CEO of brokerage ConvergEx Group[BNYCG.UL]. One source said so serious was Nasdaq about Noll as a candidate that it had even put him through CEO boot camp training. Noll had replaced yet another CEO-hopeful in 2009. Chris Concannon, who until then had been Greifeld's No. 2, left for trading firm Virtu Financial, where he is president and chief operating officer. Friedman's decision to leave New York-based Nasdaq in 2011 was spurred in part by the career opportunity at Carlyle, but also because it meant she could spend more time in the Washington DC area, where her family lives, the sources said. Carlyle also offered her more money. The cash portion of her compensation at Carlyle was similar to what she made at Nasdaq, but the equity portion was higher. At the end of last year, Friedman had around $15.7 million worth of Carlyle stock that had not yet vested. She had to give up unvested stock when she returned to Nasdaq. Friedman and Greifeld developed a strong working rapport at Nasdaq, where Friedman helped orchestrate the takeovers of OMX Group, INET, and the Philadelphia and Boston Exchanges. The two stayed in contact after she left Nasdaq, the sources said. In February last year, Carlyle also approached Nasdaq about taking the exchange private. Talks broke down over a disagreement on price. 'HERS TO LOSE' Greifeld was a proponent of Friedman being his chosen successor even in 2011. But at the time the board was split as to whether she could lead the company, one of the sources said. She had spent her entire Wall Street career at Nasdaq, and some directors worried about her lack of outside experience and her management skills, the source said. Now, with the experience from Carlyle under her belt, the board is ready to give her a shot, the sources said. Three top Nasdaq executives, John Jacobs, Anna Ewing, and Bruce Aust, will report directly to her. One source said, the CEO job is “hers to lose.” Under Greifeld, Nasdaq has been diversifying away from transaction businesses, which are challenged after years of soft trading volumes and competition from upstart trading venues as well as brokerages that execute stock orders internally in so-called "dark pools." It is instead investing in providing technology, data, and corporate services to companies. These more stable sources of income largely fall under the business lines that Friedman now leads. Co-President Hans-Ole Jochumsen is in charge of transaction services. Nasdaq's stock has risen nearly 50 percent since the beginning of last year, spurred in part by a bull market and takeover expectations following Intercontinental Exchange Inc's $11 billion acquisition of NYSE Euronext.
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