With U.S. economic growth being the sturdiest since recession, unemployment at an 18-year low and manufacturing activity at a decent clip despite the ongoing trade spat, it makes sense to ride out the amazing growth momentum. And that’s what investors did on Jun 4 — they pushed the Nasdaq to an all-time high.
The NASDAQ 100 was at a record 7,143.5703 on Jun 4 while the NASDAQ Composite hit 7,606.46. While several corners of the market are presently offering opportunities, the tech-heavy Nasdaq is expected to be on fire as we progress into 2018. A global quantitative and technical strategist at Wells Fargo Investment Institute indicated that there is “a lot of room to run.”
Investors should note that in a growing economy, cyclical sectors like technology and consumer discretionary tend to do well. These sectors also perform well in a rising rate environment that we are witnessing currently in the United States.
In any case, the tech space has suffered its share of pain this year in March thanks to issues like Facebook (FB - Free Report) data debacle, short-selling pressure in Twitter (TWTR - Free Report) and concerns over semiconductor sales.
So, many of the industry biggies have been enjoying compelling valuation after the recent selloffs, which pushed the index higher. After all, rising enterprise spending, the tailwind of tax cuts and other emerging technologies have pushed investors toward these stocks.
The Nasdaq 100 gained more than 0.8% on its way to an all-time high on Jun 1. The index holds about 103 securities. Technology takes about 56.53% followed by Consumer Services (24.5%) and Health Care (9.36%). Apple (AAPL - Free Report) takes the first spot in the index with about 11.34% exposure while Microsoft (MSFT - Free Report) (9.36%), Amazon (AMZN - Free Report) (9.34%) and Facebook (5.10%) round out the top four positions.
With tech titans like Apple, Amazon, Microsoft, Electronic Arts EA and Adobe (ADBE - Free Report) and Netflix (NFLX - Free Report) hitting new highs on Jun 4, these stocks definitely played a fair role in pushing the index higher. Still, below we highlight a few Nasdaq-100 stocks that were the top performers on the day.
JD.com Inc. (JD - Free Report) – Up 5.74%
JD.com, Inc. operates as an online direct sales company in China. The stock belongs to a top-ranked Zacks industry (top 29%). It has a Zacks Rank #3 (Hold).
Baidu Inc. (BIDU - Free Report) – Up 5.01%
The Zacks Rank #1 (Strong Buy) company Baidu Inc., formerly Baidu.com, Inc. is a Chinese-language Internet search provider based in Beijing. The stock comes from a top-ranked Zacks industry (top 28%).
Ulta Beauty Inc. (ULTA - Free Report) – Up 4.67%
The Zacks Rank #3 company is a beauty retailer primarily in the United States. Though it comes from a bottom-ranked Zacks industry, the stock has a VGM Score of A.
Align Technology, Inc. (ALGN - Free Report) – Up 3.04%
The Zacks Rank #1 company is a global medical device company with industry-leading innovative products. The stock belongs to a top-ranked Zacks industry (top 42%).
Ross Stores Inc ROST) – Up 3.01%
It is the largest off-price apparel and home fashion chain in the United States, the District of Columbia and Guam. The stock carries at Zacks Rank #3. Though the company belongs to a bottom-ranked Zacks industry, it has a VGM Score of B.
Ctrip.com International Ltd. (CTRP - Free Report) – Up 2.93%
It is a leading travel service provider of hotel accommodations, airline tickets and packaged-tours in China. The stock hails from a top-ranked Zacks industry (top 29%) and has a Zacks Rank #3.
NVIDIA Corporation NVDA – Up 2.81%
It is the worldwide leader in graphics processors and media communications devices and belongs to a top-ranked Zacks industry (top 2%). The stock sports a Zacks Rank #1.
The Hottest Tech Mega-Trend of All
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