The major indices
Indices
Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track an index. The difference between an index fund’s performance and the index, if any, is called tracking error. Most major countries boast multiple indices. Commonly traded indices include the S&P 500, NASDAQ-100, Dow Jones Industrial Average (DIJA), EURO STOXX 50, Hang Seng Index, and many more.Stock market indices can be characterized or segmented by the index coverage set of stocks. The overall coverage of an index constitutes an underlying group of stocks, most commonly grouped together by underlying investor demand.How to Trade IndicesRetail brokers offer indices exposure through the use of contracts-for-difference (CFDs) or exchange-traded funds (ETFs). Each are popular ways to trade specific markets and are almost always on offer at most brokers.Investors can choose between multiple types of indices that traditionally fall within several categories. This includes country coverage, regional coverage, global coverage, exchange-based coverage, and sector-based coverage.All indices are ultimately weighted in a number of different ways. The most common mechanisms include market-capitalization weighting, free-float adjusted market capitalization weighting, volatility weighting, price weighting, and others.
Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track an index. The difference between an index fund’s performance and the index, if any, is called tracking error. Most major countries boast multiple indices. Commonly traded indices include the S&P 500, NASDAQ-100, Dow Jones Industrial Average (DIJA), EURO STOXX 50, Hang Seng Index, and many more.Stock market indices can be characterized or segmented by the index coverage set of stocks. The overall coverage of an index constitutes an underlying group of stocks, most commonly grouped together by underlying investor demand.How to Trade IndicesRetail brokers offer indices exposure through the use of contracts-for-difference (CFDs) or exchange-traded funds (ETFs). Each are popular ways to trade specific markets and are almost always on offer at most brokers.Investors can choose between multiple types of indices that traditionally fall within several categories. This includes country coverage, regional coverage, global coverage, exchange-based coverage, and sector-based coverage.All indices are ultimately weighted in a number of different ways. The most common mechanisms include market-capitalization weighting, free-float adjusted market capitalization weighting, volatility weighting, price weighting, and others.
Read this Term are closing higher for the second consecutive day. The Dow, S&P and NASDAQ indices will close up about 1.5%.
The final numbers showing:
- Dow Industrial Average rose 526.74 points or 1.6% at 33376.49
- S&P index rose 56.78 points or 1.49% at 3878.39
- NASDAQ index rose 162.27 points or 1.54% at 10709.38
- Russell 2000 rose 28.92 or 1.65% at 1776.94
A pretty congruent performance by all the major indices.
Micron is reporting after the close:
- revenues come in at $4.09 billion versus $4.11 billion estimate
- earnings
Earnings
A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation’s operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share prices, while unexpectedly bad earnings can risk declines in share prices. Using Earnings to Better Inform Investment DecisionsMany analysts also use other measures such as earnings per share (EPS) as a way to compare the earnings of multiple companies.EPS is calculated by the remaining earnings leftover for shareholders, divided by the number of shares outstanding. This is a more fine-tuned measure for investors and analysts given each company has a different number of shares owned by the public.Only comparing companies’ existing earnings does not accurately indicate how much money each company has for each of its shares over a specific period.As a result, EPS is routinely used to make better-informed comparisons and forecasts.In the US, all companies are obligated to report quarterly earnings to the public, which informs on the state of any publicly traded company. These events are very monitored and important, especially for large corporations.In addition, several companies are used as barometers for the state of the overall market or US economy, lending further weight to these metrics.Ultimately, earnings are an integral element of the US stock market and ensure companies disclose their financials in ways that do not leave investors or the public in the dark.
A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation’s operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share prices, while unexpectedly bad earnings can risk declines in share prices. Using Earnings to Better Inform Investment DecisionsMany analysts also use other measures such as earnings per share (EPS) as a way to compare the earnings of multiple companies.EPS is calculated by the remaining earnings leftover for shareholders, divided by the number of shares outstanding. This is a more fine-tuned measure for investors and analysts given each company has a different number of shares owned by the public.Only comparing companies’ existing earnings does not accurately indicate how much money each company has for each of its shares over a specific period.As a result, EPS is routinely used to make better-informed comparisons and forecasts.In the US, all companies are obligated to report quarterly earnings to the public, which informs on the state of any publicly traded company. These events are very monitored and important, especially for large corporations.In addition, several companies are used as barometers for the state of the overall market or US economy, lending further weight to these metrics.Ultimately, earnings are an integral element of the US stock market and ensure companies disclose their financials in ways that do not leave investors or the public in the dark.
Read this Term-per-share come in at -4 cents versus -1 cent expected
- company to cut headcount by roughly 10%
- EPS view $-0.72 to $-0.52 versus $-0.50 expected
- revenues are expected at 3.6 – 4 billion versus 3.88 billion expected
The shares of Micron are trading marginally higher after the close up $0.51 at $51.70
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