Diamonds and Dogs
The Nasdaq is back above 5000 nearly 15 years later. The index only rose above 5000 seven times, closing about 5000 only twice in March of 2000. A lot has changed in the last 15 years. Only 3 stocks remain in the top 10 Cisco System, Intel, and Microsoft. Cisco, the largest market cap stock back then, ironically made a new high today, but still remains well over 50% below its all-time highs. Cisco is now number 9 on the list. Microsoft remains exactly where it stood 15 years ago at number 2 on the list. JDS Uniphase back in 2000 was the 6th largest holding in the Nasdaq. Now it's a glimpse of its former self with a market cap of just $3 billion. Google wasn't public back then while Facebook didn't exist. CEO, Mark Zuckerberg was only 16. On an inflation adjusted basis, the Nasdaq would have to rise to 7000 to equal the 5000 level made back in 2000.
Lumber Liquidators is in liquidation mode today. The wood flooring stock dropped 25% after a negative 60 Minutes piece last night. The piece claims that Lumber Liquidators laminate wood flooring products are composed of high levels of cancer causing chemicals. Not a good thing if you're walking on them all day. The company came out and defended their position this morning stating the 60 Minutes piece used improper testing methods, but the damage has been done. With the stock trading around $39 a share today, Morgan Stanley came out and removed their overweight recommendation and 85 price target. Thanks for nothing.