SMB Index: Local Stocks Take a Hit in February

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This monthly feature from SurePath Capital Partners looks at the relative optimism about a range of public companies working with SMB clients. Follow the SurePath SMB Index in real time by clicking here.

Let’s begin with a recap. January was a pretty solid month for local stocks.

In a turbulent February, which saw stocks give back gains from January over tqo days (Feb 7–9), the SCP SMB Index retreated 2% during the month.

The SCP SMB Index declined 2% in January. The S&P 500, Nasdaq, and Dow Jones all experienced losses during the month of 2.8% and 1% and 2.6%, respectively.

Returns since inception (indexed at Jan 4, 2016)

Since the inception of the SCP SMB Index in January 4, 2016 (where 100% is no change), here are the returns till February 28, 2018:

  • SCP SMB Index — 151.01%
  • S&P 500–136.35%
  • Nasdaq — 149.50%
  • Dow Jones — 148.17%

Monthly gains

During February the SCP SMB Index retreated from $136.87, down to $134.20 at the end of the month.

In comparison, during the month of February, other benchmark indices made the following moves:

  • the S&P 500 was down 2.8% during the month of February
  • the Nasdaq dropped 1% from the end of January
  • the Dow Jones declined 2.6% since the end of January

Drivers of movement

The SCP SMB Index is weighted based on the market capitalization of the 35 companies that are included in the index. The market cap of the top 5 companies (by market cap) accounts for ~57% of the total market cap of all 35 companies and therefore the movement of these 5 companies influences the SMB Index as a whole.

All 5 top constituents saw losses during the month of February, led by First Data Corp. dropping 11.8%.

Here are the top 5 gainers and losers for January.

GrubHub led the gainers, up 37.6% in the month of February, while led the list of losers, down 22.6% during the month.

Here’s how all 35 companies stacked up in the month of February

17 out of the 35 companies in the SCP SMB Index experienced gains in the month of February.