Advertisement

R&D Market Pulse Index for the week ending July 14, 2017 closed at 3,522.16 for the 25 companies in the R&D Index. The Index was up 2.48% (or 85.38 basis points) over the week ending July 7, 2017. Twenty-three R&D Index companies gained value last week from 0.05% (Johnson & Johnson) to 4.78% (Microsoft). Two R&D Index companies lost value last week from -0.16% (Merck & Co.) to -1.36% (Bristol-Myers Squibb).

The U.S. Dept. of Commerce reported on Friday that inflation was unchanged in June, which disappointed economists who expected overall prices to advance 0.1% and core prices to increase 0.2%. These soft inflation data result in caution by the Federal Reserve in its plan for future short-term interest rate increases. Low inflation rates lowers the purchasing power of the fixed returns on government bonds and can lead to higher bond interest rates.

Growth in China's domestic agricultural production is expected to lag behind Chinese demand in 2017 and for the next several years, according to a report issued by the Organization for Economic Cooperation and Development (OECD). Production has actually fallen for the past three years, but was masked by withdrawals from China's strategic reserves. Part of this trend was due to a change in China's agricultural policy in 2014, which stated rational use of international agricultural markets and reliable trade relations. The net result is declining Chinese production of cotton, soybeans, sugar, rapeseed and now corn, according to the U.S. Dept. of Agriculture. This has also resulted in increased imports (by about 18% or more) from Brazil, the U.S. and Thailand to fill the gap.

The Organization for Economic Co-operation and Development (OECD) also issued an economic forecast last week, citing faster growth in France and China for 2017, but a slowdown in the U.S., the UK, Italy and Russia. Earlier expectations for increases in investment spending, and cuts in taxes under President Trump have failed to appear in the U.S., while a slowdown in consumer spending in the UK in response to an increase in inflation are being linked to the pound's depreciation from the UK's vote to leave the EU.

The newly appointed FDA commissioner Scott Gottlieb appears to be speeding up drug approval policy at the agency, according to a report last week in the Wall Street Journal. The report suggests that the FDA is developing “a much more pragmatic and practical approach to drug development, something less rigid, and a little more holistic than previous FDA practices.”

      R&D Index Week Ending July 14, 2017      
  Ticker Exchange 2017 R&D billions$ 07/07/17 07/14/17 7/14/17 to 7/7/17 7/14/17 to 1/1/17
Amazon AMZN NASDAQ 17,774 978.76 1,001.81 2.36% 33.60%
Alphabet/Google GOOGL NASDAQ 15,845 940.81 976.91 3.84% 23.28%
Microsoft MSFT NASDAQ 13,987 69.46 72.78 4.78% 17.12%
Intel INTC NASDAQ 13,499 33.88 34.68 2.36% -4.38%
Apple AAPL NASDAQ 11,506 144.15 149.04 3.39% 28.68%
Volkswagen AG VLKAY OTC 11,260 32.23 33.62 4.31% 17.22%
Roche Pharm RHHBY OTC 10,174 31.37 31.94 1.82% 11.95%
Toyota TM NYSE 9,170 108.47 110.20 1.59% -5.97%
Johnson & Johnson JNJ NYSE 9,060 132.54 132.60 0.05% 15.09%
Novartis NVS NYSE 7,870 82.32 83.16 1.02% 14.17%
General Motors GM NYSE 7,468 34.94 36.35 4.04% 4.33%
Pfizer PFE NYSE 7,288 33.35 33.43 0.24% 2.92%
Bristol-Myers Squibb BMY NYSE 6,942 55.91 55.15 -1.36% -5.63%
Cisco CSCO NASDAQ 6,827 30.90 31.42 1.68% 3.97%
Qualcomm QCOM NASDAQ 6,723 55.35 56.81 2.64% -12.87%
Oracle ORCL NYSE 6,702 49.35 50.56 2.45% 31.50%
Honda HMC NYSE 6,519 27.26 27.63 1.36% -5.34%
Astra Zeneca PLC AZN NYSE 6,363 33.75 33.87 0.36% 23.98%
Merck & Co. MRK NYSE 5,759 63.16 63.06 -0.16% 7.12%
Daimler DDAIY OTC 5,084 63.48 64.87 2.19% -8.27%
Bayer AG BAYN XETRA 4,880 109.95 112.75 2.55% 13.74%
Sanofi SA SNY NYSE 4,755 47.90 48.18 0.58% 19.14%
IBM IBM NYSE 4,628 152.94 154.24 0.85% -7.08%
GlaxoSmithKline GSK NYSE 4,508 42.26 42.75 1.16% 11.01%
Eli Lilly Co LLY NYSE 4,489 82.29 84.35 2.50% 14.68%
Total     209,080 3,436.78 3,522.16 2.48% 18.10%
               
    Biopharmaceutical 714.80 721.24 0.90% 11.76%
    Automotive 266.38 272.67 2.36% -2.84%
    ICT   1,476.84 1,526.44 3.36% 16.83%

 

Advertisement
Advertisement