The index was created by Standard & Poor’s and is formed by calculating the price trend of the 500 companies with the largest capitalization in the United States. The securities of these companies are traded on the NYSE, NASDAQ and AMEX markets
Among the main stocks that make up the S&P 500 index are: Amazon, Apple, Microsoft, Alphabet (Google), Berkshire Hathaway (by Warren Buffett), Johnson & Johnson, Facebook, Exxon Mobil and other very important brands. While, if we go to see the most represented sectors, there is Information Technology with 20.7%, Pharmaceutical (15.0%) and Financial (13.6%).
Compared to the Dow Jones, the S&P index, being composed of a wider basket of securities, represents the situation of the financial markets of the United States in a more realistic way.
S&P 500 chart
From the graph we note the collapse that the index has had since February 19, 2020 (the day on which it touched 3,386.15 basis points), and the lowest price of 2,237.40 basis points recorded on March 23.
In the following weeks, the volume of business returned to over 2,800, as recorded on April 14 (2,846.06) and in the closing of April 17 (2,874.56).
Best American stocks 2020: economic analysis
Let’s now see what are the economic areas that have not suffered particular losses in 2020 or that have even increased revenues.
T elephony and connectivity . With domestic isolation, the demand for telephone contracts with greater conversation and connection margins has also increased. So not only longer and more frequent calls, but also the need for a fast and unlimited connection. Consumer needs have seen an increase in the following activities: distance learning, on demand entertainment services (Netflix, Disney +, Amazon Prime Video, etc.), smart working, and much more.
Electronic devices . To support the activities listed above you need: latest generation mobile phones, tablets, computers and peripherals, and more.
S ervices on demand . Online entertainment services have seen a spike in subscriptions.
A limentari and hygiene . Purchases of food and hygiene products are experiencing a real golden age.
P electronic ayments . Given the recommendations of the WHO (World Health Organization), cash will be used less and less, with the widespread use of electronic cards and digital payments in general.
Online shopping . Not being able to devote ourselves to traditional shopping, we focus on online shopping for every kind of product.
F armaceutici and biomedicine . The attention of the whole world is directed towards these activities, from which results are expected both for effective treatment and for a vaccine (some are already experimenting on a clinical level).
The companies that will benefit from this situation will not only be those that operate directly in these sectors, but also those that produce supports for these activities. I am referring to companies that operate in telecommunication infrastructures, or companies that produce components for electronic devices (chips, micro chips, etc.), or companies with internet services and digital productivity (software, cloud computing, data centers, etc.) .
Best American stocks
The best American stocks 2020
As we said, some economic categories have not been affected by the crisis generated by COVID-19, and some are even registering greater confidence from investors.
So let’s see which companies saw their performance increase and therefore their revenues in the first quarter of 2020.