Global Stock Indexes Experience Double Tops
During the last quarter of 2011, several global stock indexes experienced double tops. These indexes include the Dow Jones Industrial Average, S&P 500, and Nasdaq 100. The PPI, or Price-Piece Index, also experienced a double top year-over-year.
Dow Jones Industrial Average
Whether you are an active investor or you just want to get a sense of how your favorite stocks are doing, you might want to take a look at the Dow Jones Industrial Average and global stock indexes. These are two indices that measure the performance of the largest companies in the United States.
The Dow Jones Industrial Average is an index that tracks 30 blue-chip companies on the NYSE and Nasdaq. The index is price-weighted, meaning it favors companies with higher share prices. It has been described as one of the most widely followed indicators of the stock market‘s performance.
The Dow Jones is one of the oldest stock indices in the world, dating back to 1896. It is composed of 30 stocks that are actively traded. Its value is calculated by dividing the prices of these 30 companies by the divisor, which is the sum of the prices of each of these 30 stocks.
NASDAQ-100 and global stock indexes are among the most quoted measures of stock market activity in the world. NASDAQ is a quotation system run by the National Association of Securities Dealers. It has a strict set of guidelines. To be included in the index, companies must be listed exclusively on a Nasdaq exchange. In addition, companies must not be involved in bankruptcy proceedings.
The index is composed of stocks from different sectors, including technology, communications, and industrials. The index’s main component is the technology sector, which accounts for about half of its weight. Some of the leading technology companies include Google, Apple, and Facebook.
The index’s other sectors include communications, consumer discretionary, and healthcare. The index’s biggest holding is Apple, which accounts for about 14% of its market value. Other companies include Netflix, Cisco, and Tesla.
Investing in the Standard & Poor’s 500 index is a great way to get your foot in the door in the US stock market. The S&P 500 index is considered the best overall measurement of the performance of the American stock market.
The S&P 500 is a price index that includes 500 large companies. These companies represent the largest corporations in the United States. The value of each company is calculated based on its market capitalization. The market cap is the value of a company’s shares multiplied by its outstanding shares.
The S&P 500 is weighted using market capitalization. The larger the market cap, the bigger the impact on the broader index. For example, the S&P 500 includes top companies such as Microsoft, Citigroup, and General Electric.
PPI year-over-year recorded a double top
Earlier this week, the Bureau of Labor Statistics released the Consumer Price Index. The report showed a 7.7% increase in year over year inflation for consumer goods, which is the highest in more than four decades.
The PPI also hit a record high. The index measures the rate of inflation for final demand, or prices paid to U.S. wholesalers. The PPI’s biggest gain came in October, when light fuel oils rose 17.1%.
In October, the core PPI measured an impressive 6.7% year over year, but the headline PPI came in at 0.8%, a surprisingly small increase. The core PPI is a measure of the change in prices paid for finished goods that exclude volatile energy prices. The core PPI measures prices paid for finished goods such as clothing, furniture and home appliances.
Shariah compliant indexes
During the global financial crisis, Islamic indices have outperformed conventional indices. However, the results have been found to be inconclusive. Several studies have been conducted to analyze the performance of Islamic and conventional stock indexes. Various methodologies have been applied to the study.
The study used data from the Thomson Reuter DataStream. The period studied was the pre-COVID-19 period. It is the period which is considered more favourable for market growth.
The first Islamic index was instituted in 1999 and it was called the Dow Jones Islamic Market (DJIM) index. The indices were supervised by Islamic supervisory boards. It was the first of its kind in the world. It has over 1,600 stocks.
The Shariah compliant global stock indexes have gained much attention from investors, policy makers, researchers and issuers. The indices are less volatile compared to the conventional strategies. However, the authenticity of the Shariah compliance is yet to be verified.