The Performance Of Individual Stocks And S&P 500 After 50 Trading Days Of 2014

Individual Stocks

Already we have passed 50 trading days in this year. The comparison between S&P 500 index and the Bull market shows S&P 500 index return is just about the average while the Bull market is not showing the trends that it showed in the previous years.

In the previous years, we saw the Bull market index going high till the mid of March and from March onward it went down. This time, however, it started off a bit slowly. Some analysts held that the first 50 trading days could give a clear indication of the performance of individual stocks.

It has been found in surveys that the best-performing stocks of 2013 within the first 50 days are gained more than 6% in next 50 trading days. Add to that, a majority of those stocks performed positively for the rest of the year. Using last year’s performance as a yardstick, some stocks have been selected which analysts expect to perform this year.

Top 5 of these stocks are Nabors Industries Limited New, Manitowoc Company Inc, NXP Semiconductor N.V, Exact Sciences Corporation and Apollo Education Group Inc (A). These stocks seem to be doing pretty well. Nabor Industries is up 1.91% from its previous closing of $24.04, The Manitowoc Company, Inc. Is up 0.62% from previous closing of $30.86, NXP is up 0.66% and EXAS is up 0.42%.

Only Apollo Group is down. However, that could be due to people becoming relatively less interested in education. The S&P is in a good position as it closed today at $1862.77, which is up 0.29% from yesterday’s closing of $1857.44.

It is pertinent to mention that US economists had changed their outlook on S&P 500 after Janet Yellen of Federal Reserve said interest rate won’t be increased till mid of next year. Fed expects S&P 500 to fulfil the year-end target of 1900, which is more than 2% of what of its current trading value.

A strategist called David Kostin said, “Investors are focused on the near-term implications of interest rate hikes, but they should also be mindful of the long-term implications of a pick-up in wage growth, which should negatively affect margins.”

After Yellen’s announcement, S&P 500 fell 0.6% however it recently went up. So, we need to keep our eyes open at the performance of S&P 500 stocks.