It’s that time of year again when the Nasdaq stock market decides what’s hot and what’s not.
The annual rebalancing of the Nasdaq 100 – the 100 largest non-financial stocks that trade on the Nasdaq – was announced today, with eight stocks removed and eight added.
In as of Dec. 22 are Marvell , Garmin
, CareerEducation
, Lam Research
, Level 3 Communications
, Intersil
, ATI Technologies
and Research in Motion
.
Gone as of that date are ADC Telecom , Brocade
, Ciena
, Ericsson
, Human Genome Sciences
, ICOS
, Monster Worldwide
and RF Micro Devices
.
Perhaps not surprisingly, the eight getting tossed outperformed the Chosen Eight by a wide margin today, gaining 0.5% versus a 0.7% loss for the stocks being added to the index.
Traders had time to position themselves for the announcement and probably sold the news. And by the time an index recognizes a trend, it’s getting old (remember BroadVision’s addition to the S&P 500 three years ago?). Our guess is that the outperformance of the Disgraced Eight will continue for a while.
The broader market added to its gains a day after the Dow’s first close above 10,000 since May 2002, as better than expected inflation numbers held sway over an unexpected drop in consumer sentiment.
The Nasdaq added 6 to 1949, the S&P 500 rose 2 to 1074, and the Dow gained 34 to 10,042. Volume declined to 1.21 billion shares on the NYSE, and 1.46 billion on the Nasdaq. Advancers led 21-11 on the NYSE, and 19-11 on the Nasdaq. Upside volume was 65% on the NYSE, and 62% on the Nasdaq. New highs-new lows were 343-11 on the NYSE, and 180-14 on the Nasdaq.
Adobe rose 1% after beating estimates.
Oracle was unchanged ahead of its earnings report Monday night.
China.com surged 10% on Wall Street Journal coverage and plans for a mobile applications spinoff.
UTStarcom rose 5% on positive analyst comments.
Ameritrade gained 6% after raising guidance.
ValueClick fell 3% on an acquisition.
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