R&D Index |
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| Company Name | Ticker | Exchange | 2014 R&D | 07/31/15 | 08/07/15 | 08/07 to last week | Since Jan 1 | |
| 1 | Microsoft | MSFT | NASDAQ | 11,743 | 46.70 | 46.74 | 0.01% | -0.04% |
| 2 | Intel | INTC | NASDAQ | 11,537 | 28.95 | 28.88 | -0.24% | -20.42% |
| 3 | Roche Holdings | RHHBY | OTC | 9,961 | 36.11 | 35.20 | -2.52% | 3.56% |
| 4 | Novartis | NVS | NYSE | 9,086 | 103.75 | 102.21 | -1.48% | 10.31% |
| 5 | Johnson & Johnson | JNJ | NYSE | 8,672 | 100.21 | 98.87 | -1.34% | -5.45% |
| 6 | Pfizer | PFE | NYSE | 8,393 | 36.07 | 35.20 | -2.41% | 13.00% |
| 7 | Toyota | TM | NYSE | 8,141 | 133.46 | 129.95 | -2.63% | 3.56% |
| 8 | General Motors | GM | NYSE | 7,400 | 31.51 | 31.74 | 0.73% | -9.08% |
| 9 | Merck & Co. | MRK | NYSE | 7,180 | 59.00 | 57.97 | -1.75% | 5.60% |
| 10 | Ford Motor | F | NYSE | 6,900 | 14.82 | 14.80 | -0.14% | -4.52% |
| 11 | Cisco | CSCO | NASDAQ | 6,375 | 28.42 | 28.15 | -0.95% | 1.19% |
| 12 | Apple | AAPL | NASDAQ | 6,295 | 121.30 | 115.11 | -4.76% | 4.66% |
| 13 | Sanofi SA | SNY | NYSE | 5,838 | 53.92 | 53.88 | -0.07% | 16.27% |
| 14 | Qualcomm | QCOM | NASDAQ | 5,825 | 64.39 | 63.02 | -2.13% | -15.52% |
| 15 | IBM | IBM | NYSE | 5,595 | 162.01 | 155.11 | -4.26% | -3.09% |
| 16 | Astra Zeneca PLC | AZN | NYSE | 5,579 | 33.79 | 33.69 | -0.30% | -4.26% |
| 17 | Honda | HMC | NYSE | 5,571 | 33.96 | 35.25 | 3.80% | 19.09% |
| 18 | Daimler | DDAIY | OTC | 5,484 | 89.17 | 83.80 | -6.02% | -1.24% |
| 19 | Oracle | ORCL | NYSE | 5,466 | 39.94 | 39.56 | -0.95% | -12.03% |
| 20 | GlaxoSmithKline | GSK | NYSE | 5,374 | 43.44 | 44.83 | 3.20% | 4.89% |
| 21 | Siemens | SIE | XETRA | 5,195 | 97.44 | 99.14 | 1.80% | 5.80% |
| 22 | Eli Lilly Co. | LLY | NYSE | 4,934 | 84.54 | 82.27 | -2.68% | 19.25% |
| 23 | Ericsson | ERIC | NASDAQ | 4,640 | 10.73 | 10.24 | -4.57% | -15.37% |
| 24 | Bristol-Myers Squibb | BMY | NYSE | 4,534 | 65.67 | 63.42 | -3.43% | 7.44% |
| 25 | Bayer AG | BAYN | XERTA | 4,325 | 134.30 | 134.65 | 0.26% | 19.16% |
| Total | 193,474 | 1,653.60 | 1,624.14 | -1.78% | 2.71% | |||
| Source: R&D Magazine | ||||||||
The R&D Index: Market Pulse for the week ending August 7, 2015, closed at 1624.14 for the 25 companies in the R&D Index. The Index was down approximately 1.78% (or nearly 30 points) over the previous week (ending July 31, 2015). Pharmaceutical, automotive and ICT (information and communication technology) components of the Index were up 1.72% for the week, automotive companies were all down for the week (-1.15%, -2.44% and -3.00%, respectively). From the beginning of the year, the R&D Index is up 2.71% (but losing its lead over the past several weeks), with pharmaceutical companies up 8.44%, automotive companies up 1.79% and ICT still down by 4.72%.
The R&D Index has been on a roller coaster ride for the past four weeks, alternately up and down every other week by about two percentage points, with pharmaceutical companies showing better strength, ICT companies showing continued weakness and automotive companies falling somewhere in between. Overall stock market weakness last week was dominated by signals that the Federal Reserve may increase short-term interest rates as early as in September (the first time in more than six years), continued industrial weakness in China and the report of a 7% increase in the trade gap for June based primarily on the strong dollar. The Fed feels that the U.S. economy is showing strong enough growth to tolerate a round of interest rate hikes, while a number of economists feel that raising interest rates in a slow global growth environment is not prudent.
Other economic news for last week revealed continued petroleum production increases despite a global glut, further driving down pump prices. Shire PLC also made an unsolicited $30 billion bid on Baxalta last week bringing pharma-based takeover bids to a multi-year high. And some automotive companies are struggling from a dual-edged sword—first to meet component supplies amid surging demand for larger vehicles and light trucks while at the same time trying to meet federal fuel economy regulations, which are often based on the now declining share of fleet sales consisting of smaller more fuel-efficient vehicles.
About the R&D Index
R&D Magazine‘s R&D Index is a weekly stock market summary of the top international companies involved in R&D. The top 25 industrial spenders of R&D in 2014 were selected based on the latest listings from Schonfeld & Associates’ June 2015 R&D Ratios & Budgets. These 25 companies include pharmaceutical (11 companies), automotive (5), ICT (7) and conglomerate (2) organizations who invested a cumulative total of more than $170 billion in R&D in 2014, or approximately 10.8% of all the R&D spent in the world by government, industries and academia combined, according to R&D Magazine’s 2014 Global R&D Funding Forecast. The stock prices used in the R&D Index are tabulated from NASDAQ, NYSE, XETRA and OTC common stock prices (in U.S. dollars) for the companies selected at the close of stock trading business on the Friday preceding the publication of the R&D Index in in R&D Magazine’s R&D Daily eNewsletter.
The companies used in the R&D Index include Microsoft, Intel, Roche Holdings, Novartis, Johnson & Johnson, Pfizer, Toyota Motor, General Motors, Merck & Co., Ford Motor, Cisco, Apple Computer, Sanofi SA, Qualcomm, IBM, Astra Zeneca plc, Honda Motor, Daimler, Oracle, GlaxoSmithKline, Siemens, Eli Lilly Co., Ericsson, Bristol-Myers Squibb and Bayer AG. Stock prices are based on those stocks traded on the U.S. exchanges.
R&D Index trends (in the stock prices) are just one indicator of the amount of capital available to these high-technology companies to invest in R&D and should not be implied to indicate the absolute value of R&D investments made by these organizations. The companies chosen for the R&D Index have very large sophisticated internal and global R&D organizations with each company investing between $4.3 and $11.7 billion annually on their R&D efforts.
About the Author:
Tim Studt has served in a variety of senior editorial positions at Advantage Business Media (ABM) for the past 27 years, most recently as Editor-in-Chief of ABM’s R&D Magazine and Laboratory Design Newsletter and the R&D 100s Awards Program. He is currently working on the 2015 Global R&D Funding Forecast. R&D Index: Market Pulse is a new, regular column for the R&D Daily eNewsletter and will appear every Monday.
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