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The R&D Index: Market Watch for the holiday-shortened week ending July 7, 2017 closed at 3,436.78 for the 25 companies in the R&D Index. The Index was up 0.54% (or 18.51 basis points) over the week ending June 30, 2017. Twelve R&D Index companies gained value last week from 0.03% (General Motors) to 3.57% (Volkswagen AG). Thirteen R&D Index companies lost value last week from -0.01% (Eli Lilly Co.) to -2.97% (Bayer AG).

The U.S. added a seasonally adjusted 222,000 jobs in June, according to a report from the U.S. Labor Dept. Additionally, the numbers reported earlier for April and May were revised upwards to about 121,000. The unemployment rate rose to 4.4% in June from 4.3% in May as more people were actively looking for work. The Fed's summary of its June meeting (when it raised short-term interest rates to 1% to 1.25%), which was released last week, pointed to September as the time when the Fed would start to sell off its holdings in Treasury's and mortgage bonds. Analysts expect the Fed to allow $6 billion in treasury securities and $4 billion in mortgage bonds to be released per month rising each month to a maximum of $30 billion/month for treasuries and $20 billion for mortgages. The Fed is waiting until September to measure if inflation rates are meeting their expectations.

Volvo announced last week that it plans to phase out conventional engines in its cars with all new models in 2019 being electric or gas-electric hybrids. Volvo is owned by China's Geely Holding Group. The company stated that five new electric/hybrid models would be introduced between 2019 and 2021 with two of them being produced by Polestar, the high-performance unit that Volvo is spinning off as a separate branded electrified performance global car company.

China's aging and declining internal oil fields have forced the country to seek out other sources of petroleum. The beneficiary has been U.S. oil producers who have seen their exports to China increase 10-fold since 2016. U.S. crude is now cheaper than that from Middle East producers such as Saudi Arabia, although Saudi Arabia reduced its price to Asian customers last Wednesday to shore up its exports. Driven by this growing demand, U.S. exports are expected to rise to 3 million barrels/day by 2019, up from just 500,000 barrels/day in 2016.

U.S. exports in May, in part due to the oil production, rose to their highest level ($192 billion) in more than two years (April 2015), according to a report by Commerce Dept. last week. The foreign trade gap also narrowed 2.3% from April reflecting an overall improvement in the global economy.

      R&D Index Week Ending July 7, 2017      
    Ticker Exchange 2017 R&D billions$ 06/30/17 07/07/17 7/7/17 to 6/30/17 7/7/17 to 1/1/17
1 Amazon AMZN NASDAQ 17,774 968.00 978.76 1.11% 30.52%
2 Alphabet/Google GOOGL NASDAQ 15,845 929.68 940.81 1.20% 18.72%
3 Microsoft MSFT NASDAQ 13,987 68.93 69.46 0.77% 11.78%
4 Intel INTC NASDAQ 13,499 33.74 33.88 0.41% -6.59%
5 Apple AAPL NASDAQ 11,506 144.02 144.15 0.09% 24.46%
6 Volkswagen AG VLKAY OTC 11,260 31.12 32.23 3.57% 12.38%
7 Roche Pharm RHHBY OTC 10,174 31.80 31.37 -1.35% 9.95%
8 Toyota TM NYSE 9,170 105.02 108.47 3.29% -7.45%
9 Johnson & Johnson JNJ NYSE 9,060 132.29 132.54 0.19% 15.04%
10 Novartis NVS NYSE 7,870 83.47 82.32 -1.38% 13.01%
11 General Motors GM NYSE 7,468 34.93 34.94 0.03% 0.29%
12 Pfizer PFE NYSE 7,288 33.59 33.35 -0.71% 2.68%
13 Bristol-Myers Squibb BMY NYSE 6,942 55.72 55.91 0.34% -4.33%
14 Cisco CSCO NASDAQ 6,827 31.30 30.90 -1.28% 2.25%
15 Qualcomm QCOM NASDAQ 6,723 55.22 55.35 0.24% -15.11%
16 Oracle ORCL NYSE 6,702 50.14 49.35 -1.58% 28.35%
17 Honda HMC NYSE 6,519 27.39 27.26 -0.47% -6.61%
18 Astra Zeneca PLC AZN NYSE 6,363 34.09 33.75 -1.00% 23.54%
19 Merck & Co. MRK NYSE 5,759 64.09 63.16 -1.45% 7.29%
20 Daimler DDAIY OTC 5,084 63.37 63.48 0.17% -10.24%
21 Bayer AG BAYN XETRA 4,880 113.20 109.95 -2.87% 10.92%
22 Sanofi SA SNY NYSE 4,755 47.91 47.90 -0.02% 18.45%
23 IBM IBM NYSE 4,628 153.83 152.94 -0.58% -7.86%
24 GlaxoSmithKline GSK NYSE 4,508 43.12 42.26 -1.99% 9.74%
25 Eli Lilly Co LLY NYSE 4,489 82.30 82.29 -0.01% 11.88%
  Total     209,080 3,418.27 3,436.78 0.54% 14.90%
                 
      Biopharmaceutical 721.58 714.80 -0.94% 10.77%
      Automotive 261.83 266.38 1.74% -5.08%
      ICT   1,466.86 1,476.84 0.68% 13.03%
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