technology stocks make on Wall Street again just thick headlines. The electronics giant Apple on Monday in California, the latest versions of its popular iPhone mobile phone and a new digital front, the Apple Watch. Prior rumors had the investors for weeks preoccupied about the supposed content of the product presentation.
On the same day the Chinese online retailer Alibaba in New York launched a series of meetings with professional investors to protect themselves from the coming in of to present week planned IPO on the New York Stock Exchange in good light as possible. There is an initial public offering of superlatives – more than $ 20 billion equity should take the group with the placement of shares
Technology stocks like Apple this year include the mainsprings of American stock market.. Apple, the measured by market value largest American companies, this year is up 22 percent in Plus. Overall, the heavily weighted technology stocks are with a gain of around 14 percent, the third-best segment in the broad market index S & P 500 Only Title and health providers have cut with average gains of 16 percent somewhat better. The S & P 500 has risen by almost 8 percent since the beginning of the year and is at record levels
technology stocks, despite their positive performance in contrast to the S & P 500 but still away from new highs. The composite index of the electronic stock exchange Nasdaq, where many technology stocks are traded, 13 percent must climb further to set his record in 2000. After the Nasdaq index rose to 5133 points in March 2000, burst the speculative bubble of Internet and technology stocks that had previously dominated the overall stock market for years.
Equity market strategists assume technology stocks further upside potential. The reason: The company is sensitive to economic trends. If the American economy continues to grow, companies will invest more in information technology. In the second quarter, the gross domestic product of the United States, at an annual rate, grew by 4.2 percent.
optimists in the stock market also point to robust growth in revenues and profits of American public companies in the second quarter. Many market strategists have therefore recently launched their forecasts for the S & P 500 increased. As risk is however still the date on which the Federal Reserve will raise interest rates extremely low for years.
Higher interest rates make bonds more attractive to investors in comparison, which often leads to uncertainty in the stock market. Crucial to the long-term trend of stock prices is, however, the development of corporate profits. Which are inspired from economic growth, even if interest rates rise. “We further believe that equity investors should prepare themselves for a more difficult climate in the short term, since monetary policy in the fall of imponderable is,” said Gina Martin Adams, analyst at Securities Division of the bank Wells Fargo.
“Nevertheless, economic growth and trends in corporate profits better continue, allowing a relatively optimistic outlook for stocks in the long term.” the analyst now believes that the S & P 500 to rise on a twelve-month at 2100 points. Currently, the index is trading at 1985 meters. For Martin Adams is a clear change of opinion. Previously they had announced an index level of 1,850 points at the end.
Technology stocks have not all developed above average this year, despite their leadership role. Among the laggards include companies such as the Internet retailer Amazon with a significant drop of 17 per cent, or short message service Twitter, whose price has sunk to 20 percent.
Amazon had disappointed the high expectations of analysts in the second quarter. When Twitter investors wait to signals that the company’s growing number of users may eventually translate into profits. Above-average contrast, developed alongside Apple and the Internet giant Facebook, which has the changed user behavior successfully taken into account. People use the social network more and more on mobile devices like the iPhone – in contrast to personal computers. The Facebook titles are so strong risen almost double this year as the shares of Apple -. They are around 40 per cent in Plus
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