By Sean Corey
Staff Writer
U.S. stock markets have been rising nearly every day for the past week. The S&P 500, an index of 500 stocks from large companies, reached a record high on Wednesday closing at 1,890.90. The SIMM long fund had its best week of the year, and only two of our stocks were down since last week. Retail, industrial and energy sectors were particularly strong.
The rising markets can be attributed to a number of positive economic indicators. The ADP National Employment Report, which measures job creation in the private sector, reported the U.S. added 191,000 jobs in March and revised their February numbers from 139,000 to 153,000 jobs. Factory orders also rose to their highest levels in five months, according to the Commerce Department, which is a positive sign for the industrial sector. The Labor Department will issue their jobs report today. Government statistics are considered to be more credible than statistics from companies like ADP.
The first quarter of the fiscal year ended on March 31. Every public company will file a quarterly report at the end of each quarter. These reports show things like how much the company-earned (income statement) and how much cash they used or gained (cash flow). Investors look at corporate earnings as a reflection of the economy’s health.
This Week in SIMM
Long Fund: $262,711
Energy Fund: $271,380
GAINERS
Teva Pharm. (TEVA) 9.44%
Ford (F) 8.08%
GNC Holdings (GNC) 7.63%
Goodyear (GT) 6.31%
LOSERS
JP Morgan (JPM) -0.30%
iSharesBoxx (HYG) -0.17%
What happens to SIMM’s profits?
Every year we sell a various number of our stocks, either for a gain or loss. At the end of March we total up our gains and subtract our total losses. This equals our realized gains. When a stock we own appreciates in value, say from $10 to $20, we have an unrealized gain of $10. Those gains do not become realized until we sell the stock. By the SIMM bylaws, SIMM will give one third of our realized gains to the university, one third to university organizations and one third goes back into our fund. From March 31 of last year to March 31 of this year, our realized gains came to $11,311. Some of these funds are available for grants for St. Bonaventure clubs and organizations.
If you are interested in receiving a grant for your organization, email James Reed at reedjc10@bonaventure.edu. Please include a brief description of your organization, why you need this grant and what impact this donation will have on your organization and the community.
Sean Corey is a member of Students in Money Management. His email is coreysm10@bonaventure.edu.
