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The Unexpected Should Be Expected: Another Positive Earnings Period for the Nasdaq-100

Each week a team member from Nasdaq Global Indexes provides insight into what is happening across a variety of investment theses. From index and ETF performance, to analysis of market trends, our experts will cover what’s hot in the world of passive investment strategies.

This week, Ben Jones, discusses Nasdaq-100 index (NDX) and its constituents’ performance compared to the S&P 500 and other major benchmarks: 

  • Over the last week of July, 34 companies in the Nasdaq-100 index released their earnings for Q2 2020, which were in the vast majority positive.
  • Comparing the earnings from the S&P 500 to the Nasdaq-100’s, the Nasdaq-100 is faring better. Over the year, the S&P 500’s earnings are down 34% from the June 30 2019 to June 30 2020, compared to the Nasdaq-100, which is only down 14% over the same time period.
  • Based off the reported earnings of the constituents of the Nasdaq-100 index, we are beginning to see a positive forecast for the next 12 months.
  • Microsoft, Apple, Amazon, Google and Facebook, the big tech giants that make up just under half of the Nasdaq-100 (45%), are all seeing very positive earnings – all beating their estimated earnings.
  • The year-to-date performance compared to the major benchmarks is reflective of what is seen with the earnings. As of July 30th, the Nasdaq-100 index up 22.7% on a price return basis.

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