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Five stocks are responsible for almost 25% of the markets 2019 gains.

Added: (Wed Jun 19 2019)

Pressbox (Press Release) - Recent reports have shown that almost a quarter of the S&P 500’s 15% upward gains so far in the year of 2019 have come from five big names in the market. These names are Microsoft, Apple, Facebook, Amazon, and Alphabet. The report has been led by Nick Colas the co-founder and number cruncher at DataTrek Research. In details of the reports it shows that Microsoft is leading the charge with 1.3 points, Apple, Amazon, and Facebook with a respectable 0.8 points and Alphabet trailing slightly with 0.1 points, giving a total of 3.8 points of the S&P 500’s 15.3% gain in the year to day chart. Without these big names showing the growth they have the S&P would only be up by 11.5%. Nick Colas wrote in a note to DataTrek clients on Tuesday “S&P 500 returns over the next 3-5 years are inextricably linked to the performance of the Tech sector and especially those 5 names.” For a bit of perspective Microsoft and Apple are strong leaders in the technology sector, with Amazon being one of the biggest names in the Consumer Discretionary Sector. Alphabet, parent company to google and Facebook are in the newly formed Communication Services sector.

Colas has also said in his report that it may take a long while until newer high profile stocks, such as Lyft and Uber, who have only recently became publically offered are able to contribute to the great index gains, Colas continued his note to say “Names like Uber, Lyft and WeWork will be unable to boost index returns until they turn profitable and become eligible for inclusion in the S&P 500.” Although all the big five are powerful in the larger picture one company out of the five has been taking on a lot more strain of the market in recent weeks. The reason how this has happened is that the S&P500 is only just 1.3% since there may intraday record highs, which was the same day that Apple shares hit a new 2019 high. However since those highs, Apple has shown a decline of almost 10% since that date. The reason the S&P has been able to move towards their record highs is the fact that Microsoft has of late been hitting multiple new highs, and has recently become a trillion dollar company based on market cap. Since the 1st of May Microsoft has seen an increase of over 6% in share price, which for a large cap company like Microsoft is a big move.

Jeremy green – Walter International

Submitted by:walterinternational
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