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Senin, 09 Desember 2019

These are the 20 best-performing stocks of the past decade, and some of them will surprise you - MarketWatch

As we approach the end of 2019, it’s time not only for year-end lists, but end-of-decade lists.

U.S. stocks have had what can only be called an excellent decade. MarketWatch will feature a number of forward-looking articles building on the past decade’s action. Today we’re taking a look back.

The Dow Jones Industrial Average DJIA, +1.22% returned 165% (with dividends reinvested) and the S&P 500 Index SPX, +0.91% returned 244% from the end of 2009 through Dec. 5, 2019. We’re not quite at the end of 2019, but if we were, and those figures held, the compounded annual growth rate for the Dow would be 10.2%. For the S&P 500, it would be 13.2%.

That average return for the S&P 500 measures up well when compared with the 10% average for the almost 100-year period of June 30, 1927, through Sept. 30, 2019, the longest period available using custom research.

For the past decade, we reviewed the entire S&P 500, as it is currently constituted, to see which stocks performed best. Among the 500 companies, 46 have traded in their present form for less than 10 years, so they are excluded.

Here’s a list of companies whose stocks performed the best,with reinvested dividends, from the end of 2009 through Dec. 5:

Company	Ticker	FactSet industry category	Total return - 2010	Total return - Dec. 31, 2009, through Dec. 5, 2019	Years ranked within top 10 performers
Netflix Inc.	NFLX, +1.48%	Cable/Satellite TV	219%	3,767%	3
MarketAxess Holdings Inc.	MKTX, -1.39%	Investment Banks/Brokers	52%	3,182%	2
Abiomed Inc.	ABMD, +0.08%	Medical Specialties	10%	2,121%	3
TransDigm Group Inc.	TDG, +0.90%	Aerospace & Defense	52%	2,065%	0
Broadcom Inc.	AVGO, +1.56%	Semiconductors	56%	1,919%	1
Align Technology Inc.	ALGN, +0.43%	Medical Specialties	10%	1,458%	1
United Rentals Inc.	URI, +2.70%	Finance/Rental/Leasing	132%	1,434%	1
Regeneron Pharmaceuticals Inc.	REGN, +1.06%	Biotechnology	36%	1,430%	2
Ulta Beauty Inc.	ULTA, +11.09%	Specialty Stores	87%	1,233%	1
Amazon.com Inc.	AMZN, +0.64%	Internet Retail	34%	1,209%	1
Extra Space Storage Inc.	EXR, +0.39%	Real Estate Investment Trusts	55%	1,166%	1
Constellation Brands Inc. Class A	STZ, +0.65%	Beverages: Alcoholic	39%	1,124%	0
Nvidia Corp.	NVDA, +1.64%	Semiconductors	-18%	1,117%	2
Take-Two Interactive Software Inc.	TTWO, -0.19%	Recreational Products	22%	1,114%	1
Ross Stores Inc.	ROST, +0.37%	Apparel/Footwear Retail	50%	1,081%	0
Fortinet Inc.	FTNT, -1.26%	Computer Communications	84%	1,079%	1
Mastercard Inc. Class A	MA, +0.19%	Finance/Rental/Leasing	-12%	1,078%	1
Charter Communications Inc. Class A	CHTR, +0.12%	Cable/Satellite TV	10%	1,077%	0
O'Reilly Automotive Inc.	ORLY, +1.03%	Specialty Stores	58%	1,060%	1
Cintas Corp.	CTAS, +0.60%	Other Consumer Services	11%	1,053%	0
Source: FactSet

You can click on the tickers for more about each company.

The right-most column shows the number of times each stock was among the top 10 performers over the past 10 individual years (including 2019 through Dec. 5).

Netflix NFLX, +1.48% is far ahead of the pack, with a spectacular 3,767% return. That translates to a compounded annual growth rate (CAGR) of 44.1%. Amazon.com AMZN, +0.64% ranks 10th, and its 1,209% return translates to a CAGR of 29.3%. Apple AAPL, +1.93% ranks 28th, with a total return of 899% and a CAGR of 25.9%.

It’s interesting that some of the best performers for 10 years weren’t among the top 10 during any individual year. TransDigm TDG, +0.90%, for example, ranks fourth, with a 2,067% return (CAGR of 36%). The company has a very important advantage in the aerospace industry — a high barrier for entry in the market for specialized replacement parts for aircraft. In April, Will Muggia of Westfield Capital Management called TransDigm “the best managed company in America.”

Sectors

Here’s how the 11 sectors of the S&P 500 have performed from the end of 2009 through Dec. 5, 2019, with dividends reinvested, according to FactSet:

S&P 500 Sector	Total return - Dec. 31, 2009, through Dec. 5, 2019
Information Technology	390%
Consumer Discretionary	381%
Health Care	287%
Industrials	242%
Consumer Staples	205%
Financials	204%
Utilities	204%
Communication Services	151%
Materials	134%
Energy	31%
Source: FactSet

2019 winners — so far

Here are the 20 best-performing S&P 500 stocks for 2019 through Dec. 5:

Company	Ticker	FactSet industry category	Total return - 2019, through Dec. 5	Total return - Dec. 31, 2009, through Dec. 5, 2019	Years ranked within top 10 performers
Advanced Micro Devices Inc.	AMD, +0.03%	Semiconductors	115%	310%	3
Lam Research Corp.	LRCX, +1.90%	Electronic Production Equipment	98%	632%	1
Xerox Holdings Corp.	XRX, -0.13%	Computer Peripherals	96%	122%	1
Target Corp.	TGT, +0.28%	Specialty Stores	95%	241%	1
Chipotle Mexican Grill Inc.	CMG, +0.34%	Restaurants	90%	818%	3
Coty Inc. Class A	COTY, +0.85%	Household/Personal Care	87%	N/A	1
KLA Corp.	KLAC, +0.86%	Electronic Production Equipment	85%	629%	1
Copart Inc.	CPRT, +0.39%	Miscellaneous Commercial Services	85%	851%	1
Arconic Inc.	ARNC, +1.77%	Aluminum	82%	N/A	1
MarketAxess Holdings Inc.	MKTX, -1.39%	Investment Banks/Brokers	82%	3182%	2
MSCI Inc. Class A	MSCI, +2.27%	Financial Publishing/Services	79%	770%	1
ANSYS Inc.	ANSS, +1.44%	Packaged Software	77%	480%	0
TransDigm Group Inc.	TDG, +0.90%	Aerospace & Defense	76%	2065%	0
Qorvo Inc.	QRVO, +0.78%	Semiconductors	74%	445%	1
Applied Materials Inc.	AMAT, +1.36%	Industrial Machinery	74%	393%	1
Leidos Holdings Inc.	LDOS, +0.81%	Information Technology Services	73%	212%	0
Global Payments Inc.	GPN, -0.15%	Data Processing Services	72%	560%	1
Fortune Brands Home & Security Inc.	FBHS, +1.10%	Building Products	71%	N/A	0
Apple Inc.	AAPL, +1.93%	Telecommunications Equipment	71%	899%	0
Tyson Foods Inc. Class A	TSN, -0.01%	Food: Meat/Fish/Dairy	71%	723%	0
Source: FactSet

Once again, the right-most column shows how many times each stock was among the top 10 performers over the past 10 individual years (including 2019) through Dec. 5.

Don’t miss: These numbers will tell you if your tech stock is a plodding dinosaur or a speedy raptor

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2019-12-09 10:25:00Z
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A Few Cities Have Cornered Innovation Jobs. Can That Be Changed? - The New York Times

There are about a dozen industries at the frontier of innovation. They include software and pharmaceuticals, semiconductors and data processing. Most of their workers have science or tech degrees. They invest heavily in research and development. While they account for only 3 percent of all jobs, they account for 6 percent of the country’s economic output.

And if you don’t live in one of a handful of urban areas along the coasts, you are unlikely to get a job in one of them.

Boston, Seattle, San Diego, San Francisco and Silicon Valley captured nine out of 10 jobs created in these industries from 2005 to 2017, according to a report released on Monday. By 2017, these five metropolitan regions had accumulated almost a quarter of these jobs, up from under 18 percent a dozen years earlier. On the other end, about half of America’s 382 metro areas — including big cities like Los Angeles, Chicago and Philadelphia — lost such jobs.

And the concentration of prosperity does not appear to be slowing down.

America’s deepening inequality has become a cause for alarm. The picture of a country cloven between a small set of prosperous urban “haves” and a large collection of “have-nots” has come sharply into focus as an opioid epidemic has overtaken vast swaths of the country. It gained the attention of the political class in 2016, when voters across the industrial heartland embraced Donald J. Trump’s populist message.

The search for ideas that could improve the economic conditions of deprived areas, long derided by economists as a fool’s errand — why spend money on improving the lot of places rather than people, many experts argued — is now at the top of policymakers’ lists.

The report is by Mark Muro and Jacob Whiton from the Brookings Institution’s Metropolitan Policy Program, and Rob Atkinson of the Information Technology and Innovation Foundation, a research group that gets funding from tech and telecom companies. They identified 13 “innovation industries” — which include aerospace, communications equipment production and chemical manufacturing — where at least 45 percent of the work force has degrees in science, tech, engineering or math, and where investments in research and development amount to at least $20,000 per worker.

The authors argue that a broad federal push is needed to spread the business of invention beyond the 20 cities that dominate it. “Hoping for economic convergence to reassert itself would not be a good strategy,” Mr. Muro said.

Metro areas that have

gained innovation jobs . . .

75,000

10,000

1,000

Gained the most

In thousands

Raleigh, N.C.

+12

San Francisco

+77

Seattle

+56

Madison, Wis.

+12

Silicon Valley

+52

Denver

+10

Salt Lake City

+ 8

Boston

+26

Charleston, S.C.

+ 7

San Diego

+20

. . . and those that

have lost them.

Lost the most

In thousands

Wichita, Kan.

–8

Oxnard, Calif.

–5

Los Angeles

–8

Albuquerque

–5

Colorado Springs

–5

Dallas

–9

Durham, N.C.

–6

Philadelphia

–9

Washington

–7

Chicago

–13

Metro areas that have gained

innovation jobs . . .

75,000

10,000

1,000

Gained the most

In thousands

Lost the most

In thousands

Wichita, Kan.

–8

Oxnard, Calif.

–5

San Francisco

+77

Raleigh, N.C.

+12

Los Angeles

–8

Albuquerque

–5

Madison, Wis.

+12

Seattle

+56

Colorado Springs

–5

Dallas

–9

Silicon Valley

+52

Denver

+10

Durham, N.C.

–6

Philadelphia

–9

Salt Lake City

+ 8

Boston

+26

Chicago

–13

Washington

–7

Charleston, S.C.

+ 7

San Diego

+20

. . . and those that

have lost them.

Metro areas that have gained

innovation jobs . . .

. . . and those that

have lost them.

In thousands

Gained the most

Lost the most

In thousands

Wichita, Kan.

–8

Oxnard, Calif.

–5

San Francisco

+77

Raleigh, N.C.

+12

75,000

Los Angeles

–8

Albuquerque

–5

Madison, Wis.

+12

Seattle

+56

Colorado Springs

–5

Dallas

–9

Silicon Valley

+52

Denver

+10

10,000

Durham, N.C.

–6

Philadelphia

–9

Salt Lake City

+ 8

Boston

+26

1,000

Chicago

–13

Washington

–7

Charleston, S.C.

+ 7

San Diego

+20

Expanding the knowledge economy across all of America might indeed be a fool’s errand. As Mr. Atkinson noted, Erie, Pa., and Flint, Mich., might never attract the Googles or Apples of the world. But midsize cities like St. Louis, Pittsburgh and Columbus, Ohio, could feasibly transform into hubs of technological entrepreneurship.

The report’s authors propose identifying eight to 10 cities, far from the coasts, that already have a research university and a critical mass of people with advanced degrees. The government would then spend about $700 million a year for research and development in each of them for a decade. Lawmakers could give high-tech businesses that set up shop in these cities tax and regulatory breaks. Mr. Atkinson suggested a limited break from antitrust law to allow businesses to coordinate location decisions.

Battling the forces driving concentration will be tough. Unlike the manufacturing industries of the 20th century, which competed largely on cost, the tech businesses compete on having the next best thing. Cheap labor, which can help attract manufacturers to depressed areas, doesn’t work as an incentive. Instead, innovation industries cluster in cities where there are lots of highly educated workers, sophisticated suppliers and research institutions.

Unlike businesses in, say, retail or health care, innovation businesses experience a sharp rise in the productivity of their workers if they are in places with lots of other such workers, according to research by Enrico Moretti, who is an economist at the University of California, Berkeley, and others.

Other industries and workers are also better off if they have the good fortune of being near leading-edge companies. The report points out that the average output per worker in the 20 cities with the most employment in the 13 high-tech industries is $109,443, one-third more than in the other 363 metros across the country.

The cycle is hard to break: Young educated workers will flock to cities with large knowledge industries because that’s where they will find the best opportunities to earn and learn and have fun. And start-ups will go there to seek them out.

Even skyrocketing housing costs have not stopped the concentration of talent in a few superstar cities. High-tech companies that seek cheaper places to set up beyond their hubs often go to Bangalore, India, rather than Birmingham, Ala.

“They keep the core team in Silicon Valley or Seattle but put the other stuff in Shenzhen or Vancouver or Bangalore,” Mr. Atkinson said. Shenzhen, China, may not be much cheaper than Indianapolis, he added, but Shenzhen is already a tech hub in its own right.

Annual output

per worker

Retail

Health care

Basic manufacturing

Finance

$400

thousand

Innovation industries

Innovation jobs in the most

concentrated metro areas

are the most productive.

300

200

100

Next 15%

Next 5%

Top 5%

For metro areas in the bottom 75%

of employment in each sector.

Annual output per worker

Innovation

industries

Basic

manufacturing

Health care

Finance

Retail

$400

thousand

Innovation jobs in the most

concentrated metro areas

are the most productive.

300

200

100

Next 15%

Next 5%

Top 5%

For metro areas in the bottom 75% of employment in each sector.

It is uncertain whether government support could pull innovation out of the clutches of superstar cities. The proposal by Brookings and the Information Technology Foundation will not come cheap: They estimate a $100 billion price tag over 10 years.

The payoff, however, would extend beyond the new technology hubs. Jon Gruber, an economist at the Massachusetts Institute of Technology, noted that in a world where Cincinnati becomes a hub of entrepreneurship, “we don’t need to fix opioid country” in Appalachia. That’s because many of those areas are within commuting distance of Cincinnati.

What’s more, not trying also entails risks. In his book “Jump-Starting America,” Mr. Gruber and his co-writer, M.I.T.’s Simon Johnson, argue for a sustained national effort to seed new technology clusters widely. Without federal government support, Mr. Gruber said, the United States is unlikely to produce many new high-tech hubs.

The risk, he said, is not only that much of America will be left to founder as superstar cities become more congested and less affordable. Political support for publicly funded research will crumble unless more of the country enjoys the benefits from innovation.

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2019-12-09 05:02:00Z
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China reportedly orders state offices to remove foreign tech which could hit US firms like Microsoft - CNBC

A visitor tries out Microsoft Corp.'s Windows 10 operating system on a tablet.

Kiyoshi Ota | Bloomberg | Getty Images

China's Communist Party has ordered all state offices to remove foreign hardware and software within three years, the Financial Times reported, in a move which could hit major U.S. firms including Microsoft, Dell and HP.

The policy has been dubbed "3-5-2" because the replacement of the technology will happen at a pace of 30% in 2020, 50% in 2021, and 20% in 2022, the newspaper said, citing a note from brokerage firm China Securities. Analysts there estimate that 20 million to 30 million pieces of foreign equipment need to be replaced in China.

China Securities said that the order had come from the Chinese Communist party's Central Office earlier this year, the FT said. While the directive is not public, two cybersecurity firms told the FT that their government clients described the policy to them.

China Securities did not respond to a request for comment when contacted by CNBC. Meanwhile, China's Ministry of Industry and Information Technology was not immediately available for comment when contacted by CNBC by fax. Microsoft, HP and Dell did not immediately respond to CNBC's request for comment outside of business hours.

Neil Campling, head of technology, media and telecommunications research at Mirabaud Securities, said the move by the Chinese government aims to protect against an escalation of tensions with the U.S.

"That is something that China is looking at to make sure government operations are not affected by escalating tensions with the U.S.," Campling told CNBC.

Trade war impact

Beijing's move comes against the backdrop of the ongoing U.S.-China trade war in which technology has been front and center. China's technology firms have been the target of U.S. pressure. Earlier this year, Huawei was placed on a U.S. blacklist which stopped American firms doing business with the Chinese telecom networking giant.

Washington expanded its blacklist in October to include a number of Chinese surveillance firms like Hikvision, one of the world's biggest companies for such technology. A provision of a U.S. law known as the National Defense Authorization Act also prohibits executive government agencies from procuring telecommunications hardware made by Huawei and another Chinese firm, ZTE.

China's latest policy may be seen as one of the most direct moves against U.S. technology firms during the trade war. While Chinese government offices often use Chinese PCs such as Lenovo, they run Microsoft's Windows software and may also use hardware from Dell and HP. The impact on trade negotiations will depend on how the U.S. "digests" China's move, according to Nick Marro, global trade lead at The Economist Intelligence Unit.

"Discrimination against foreign technology has been a part of the policy framework in China for years now, but it's something that USTR (United States Trade Representative) is already familiar with," Marro told CNBC.

"This might nevertheless complicate the discussions around Huawei, ZTE and other companies in terms of their access to the U.S. market. Much of the popular narrative has centered around the U.S. unfairly banning these Chinese companies from its market; at least with this story, the administration can publicly play the blame game of, 'well, China's doing it too, and they've been doing it for a long time.'"

U.S. companies like Google and Facebook have been blocked from operating in China for several years.

Wider risk

Beijing's directive to remove foreign hardware and software may not be straightforward. While a company like Lenovo is Chinese, it uses chips from American supplier Intel. And China doesn't really have a homegrown alternative to Microsoft's Windows. Huawei released its own operating system called HarmonyOS earlier this year, but it's unclear whether it would be suitable for government use.

Huawei was not immediately available for comment when contacted by CNBC.

But China's move could also been seen as part of its broader push to wean itself off of American technology, try to catch up in areas like semiconductors and even take a lead in industries such as artificial intelligence.

Mirabaud's Campling said that the U.S. firms implicated in Beijing's move would face "limited impact" mainly because it relates to government offices and not consumers. However there is concern that this could be a prelude to a wider backlash against American consumer technology which would hurt U.S. firms much more.

"The wider risk is if the Chinese consumer feels threatened by international relations and the issues. Without doubt, if it goes onto a consumer level, there would be issues into companies such as Apple, which is a staple in terms of U.S. brands," Campling said.

— CNBC's Evelyn Cheng contributed to this report.

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2019-12-09 08:34:00Z
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Minggu, 08 Desember 2019

Amazon CEO Jeff Bezos: America 'in big trouble' if Big Tech abandons Pentagon - Fox Business

MarketWatch senior reporter Jon Swartz discusses the safety scrutiny tech companies face as they move rapidly into new services.

Amazon CEO Jeff Bezos said that the U.S. is in "big trouble" if major tech companies abandon working with the Pentagon.

"My view is that if big tech is turning their back on the Department of Defense, this country is in big trouble," Bezos said at the Reagan National Defense Forum in Simi Valley, California, on Saturday.

AMAZON FILES LAWSUIT OVER PENTAGON WAR CLOUD CONTRACT

"We are going to support the Department of Defense, this country is important," he said.

Bezos' statement comes shortly after Amazon filed a lawsuit on Friday challenging the Pentagon's decision to award its massive war cloud contract to the only other bidder in the procurement process — Microsoft.

The suit, filed in the U.S. Court of Federal Claims, is over the Joint Enterprise Defense Infrastructure (JEDI) contract, a winner-take-all job that is valued at about $10 billion. It is intended to help the military upgrade and transfer classified data.

Bezos may have made the warning in light of Google's decision not to renew its contract with the U.S. Department of Defense for a drone project that sparked criticism among employees.

Ticker	Security	Last	Change	Change %
AMZN	AMAZON.COM INC.	1,751.60	+11.12	+0.64%

Former Google Cloud CEO Diane Greene announced the decision regarding what is known as Project Maven in 2018, according to Gizmodo, which cited three sources. The initial contract, which is set to expire in 2019, was signed when the company was more focused on pursuing military work, Greene reportedly said, but employee backlash has sparked the decision not to renew.

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Project Maven is an artificial intelligence program designed to use data captured by government drones to identify and track objects viewed on surveillance footage. Google workers were concerned about how the application could be weaponized once under ownership of the U.S. military.

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FOX Business' Brittany De Lea contributed to this report.

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2019-12-08 14:12:09Z
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