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Investing.com - Three things that flew under the radar this week.
1. The Nasdaq 100 Welcomes New Stocks
Every year, Nasdaq analysts evaluate all the stocks in the Nasdaq 100 Index and cull some in favor of up-and-comers they believe better represent the dynamics of the economy.
Late Friday, Nasdaq said it was adding six new stocks and cutting six current members of the index.
Coming in before the market opens on Dec. 23 are:
ANSYS (NASDAQ:ANSS), which offers engineering simulation software and services.
CDW (NASDAQ:CDW) a merchant of tech equipment and software.
Copart (NASDAQ:CPRT), a leading online car auction company.
CoStar Group (NASDAQ:CSGP), which provides data analytics to the commercial real estate industry.
Seattle Genetics (NASDAQ:SGEN), a biotech company focused on cancer cures.
Splunk (NASDAQ:SPLK) (SPLK), a top data analytics company.
Out will be:
Toy-maker Hasbro (NASDAQ:HAS).
Medical-and-dental equipment and services company Henry Schein (NASDAQ:HSIC).
National trucking company JB Hunt Transport Services Inc (NASDAQ:JBHT).
Generic drug maker Mylan (NASDAQ:MYL).
Cybersecurity company NortonLifeLock (NASDAQ:NLOK), best known for its Norton suite of products.
Casino operator Wynn Resorts (NASDAQ:WYNN), which has huge presences in Las Vegas and Macau.
The problem with the outgoing stocks is they are mostly in industries with low growth prospects (toys for Hasbro), low profit margins (like J.B. Hunt in the trucking industry) or exposed directly to geopolitical risks (Wynn in China).
Five of the newcomers are tech or tech-related companies. Seattle Genetics, up 101% this year, is a hot biotech.
The new stocks are up an average 73.8% year to date. The weakest performer of the six is Splunk, still up nearly 37% compared with 34% for the Nasdaq 100 overall. It may also be a takeover candidate.
The departing stocks are up an average 21% this year, but two – Henry Schein and Mylan – are down 12.7% and 30% for the year, respectively.
2. Retail Sales Slipping at the Worst Time
Economic data was lost in the shuffle for the second Friday in a row as the continuous – and at times somewhat contradictory -- statements from the U.S. and China on the phase 1 trade deal garnered all the attention.
This time it was a tepid retail sales report that lost the spotlight. But investors should take note as the latest numbers don’t bode well for a festive holiday shopping season.
Retail sales for November rose just 0.2%. That was well off the 0.5% rise that economists had predicted according to forecasts compiled by Investing.com. Core retail sales, which exclude autos, ticked up 0.1%, shy of the 0.4% rise expected.