Nasdaq Hits New Record High, Shanghai Composite Plummets, Michael Kors Out of Fashion?
May 28, 2015 7:54 am
Yesterday the Nasdaq index hit a new record high of 5106.9 after closing up by 73.84. The big gainer on the Index was chip-maker Broadcom, with its shares surging by 21% after news broke regarding the possible takeover of the company by rival Avago Technologies. The Dow and S&P500 indices experienced a positive Wednesday after a tougher Tuesday; the Dow closed up by 121.45 at 18,162.99, while the S&P500 rose by 19.28 to close at 2,123.48. The big loser on the NYSE was fashion firm Michael Kors; the company’s share price tumbled by more than 23% yesterday after it announced that it expects comparable store sales growth to fall far short of official market expectations. The company’s share price tumbled by more than 23% yesterday, with its share price now down by 50% on a year ago.
Meanwhile, the index-related news from Asia was significantly different to the US; the Shanghai Composite Index took a massive hit, falling by 6.5% during the Thursday session, with investors nervous in the wake of announcements by the state’s sovereign wealth fund regarding its sell-off of positions in two state-controlled banks. Interestingly, this is not the index’s worst fall this year – January 19th saw it drop by 7.7% – and despite those two significant drops, it should be noted that the index is still up by more than 50% since the beginning of this year.
In the UK, macroeconomic data released earlier this morning showed weak consumer spending for the previous quarter, news that was tempered slightly by data suggesting the strongest growth in business investment for a decade. The FTSE is currently hovering at around its opening level.
Yesterday the Nasdaq index hit a new record high of 5106.9 after closing up by 73.84. The big gainer on the Index was chip-maker Broadcom, with its shares surging by 21% after news broke regarding the possible takeover of the company by rival Avago Technologies. The Dow and S&P500 indices experienced a positive Wednesday after a tougher Tuesday; the Dow closed up by 121.45 at 18,162.99, while the S&P500 rose by 19.28 to close at 2,123.48. The big loser on the NYSE was fashion firm Michael Kors; the company’s share price tumbled by more than 23% yesterday after it announced that it expects comparable store sales growth to fall far short of official market expectations. The company’s share price tumbled by more than 23% yesterday, with its share price now down by 50% on a year ago.
Meanwhile, the index-related news from Asia was significantly different to the US; the Shanghai Composite Index took a massive hit, falling by 6.5% during the Thursday session, with investors nervous in the wake of announcements by the state’s sovereign wealth fund regarding its sell-off of positions in two state-controlled banks. Interestingly, this is not the index’s worst fall this year – January 19th saw it drop by 7.7% – and despite those two significant drops, it should be noted that the index is still up by more than 50% since the beginning of this year.
In the UK, macroeconomic data released earlier this morning showed weak consumer spending for the previous quarter, news that was tempered slightly by data suggesting the strongest growth in business investment for a decade. The FTSE is currently hovering at around its opening level.
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