Entrepreneur Index™ stocks rebounded today. Will that trend continue?
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Is it a lull in the storm or a resumption of the bull market?
Stocks bounced back convincingly today after a two-day swoon that saw the major stock indexes fall by more than 7 percent. The Entrepreneur Index™ was up 2.39 percent on the day.
Technology stocks, the most volatile segment of the market this week, led the rebound. The Nasdaq composite index, down briefly more than 10 percent from an August peak, was up 2.29 percent. Netflix, which was down nearly 10 percent over the last two days was up 5.79 percent — the biggest gainer on the Entrepreneur Index™ today.
Other tech stocks in the index on the rise included salesforce.com (5.34 percent), Adobe Systems (4.27 percent), NVIDIA (4.92 percent), Twitter (3.67 percent) and Verisign (3.50 percent). Tech bellwethers Alphabet and Amazon were also up 2.9 percent and 4.08 percent respectively. Facebook, which disclosed details today about accounts hacked earlier this year, was one of the few tech stocks that didn’t rally today. Down for much of the day it closed up 0.25 percent.
A respite in the volatile bond market may have calmed equity investors today. The rising interest rates that have rattled the market for the last week fell sharply yesterday as September consumer prices rose a less than expected 0.1 percent. After climbing to as high 3.24 percent two days ago, the yield on the 10-year Treasury bond closed up a basis point to 3.17 percent today.
That may not comfort investors much for long. Despite President Trump’s diagnosis that the Federal Reserve Bank “is going loco,” most market analysts expect that with strong economic growth and mixed signals on inflation, the Fed will continue to gradually raise short-term rates, fueling fears that it will hurt the strong U.S. economy.
Ford Motor Co.was one of the biggest decliners on the day, falling 1.93 percent after reporting that September sales in China were down 43 percent. The stock has fallen 31 percent this year. Truck parts manufacturer PACCAR was also down 1.15 percent on the day. Bed Bath and Beyond was the biggest decliner on the index, falling 3.01 percent. The retailer missed estimates badly in the second quarter and its shares are down 37 percent so far this year.
L Brands, maker of Victoria’s Secret lingerie, continued to shine. After surprising the market with a surge in September sales figures, it posted the biggest gain on the index yesterday — up nearly 6 percent. Its shares climbed another 3.87 percent today, the biggest gain of any non-tech company on the index.
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.