Category Archives: market cap

Winter 2022 Snapshot of the S&P 500’s Market Cap

At the end of 2021, the companies that make up the S&P 500 (Index: SPX) were collectively worth $42.37 trillion. The 10 stocks that make up the largest components of the market capitalization weighted index accounted for 29.5% of that value. The following chart shows their share of the market cap of the whole index:

S&P 500 Market Capitalization, Snapshot on 31 August 2022

The other 495 firms in the S&P 500 have a collective market capitalization of $29.86 trillion.

Here is the list of the top 10 components of the S&P 500 index as of 31 December 2021:

  • Apple (NASDAQ: AAPL)
  • Microsoft (NASDAQ: MSFT)
  • Amazon (NASDAQ: AMZN)
  • Alphabet (A) (NASDAQ: GOOGL)
  • Tesla (NASDAQ: TSLA)
  • Alphabet (C) (NASDAQ: GOOG)
  • Facebook (NASDAQ: FB)
  • Nvidia (NASDAQ: NVDA)
  • Berkshire Hathaway (B) (NYSE: BRK.B)
  • United Healthcare (NYSE: UNH)

The top two firms, Apple and Microsoft, had market caps that were nearing $3 trillion each, with Apple briefly exceeding that value in early January 2022. If we combined the market cap for the two classes of Alphabet stocks, the firm formerly known as Google would have a market cap in excess of $1.8 trillion, which would rank third. Separately however, the individual Alphabet stocks rank fourth ($0.92 trillion) and sixth ($0.85 trillion) for their market cap in the S&P 500 index among the individual stock listings.

The undivided Amazon ranks third for individual stocks with a market cap of nearly $1.5 trillion. Tesla ranks fifth at $0.91 trillion, with its market cap squeezing in between the two classes of Alphabet shares. Facebook came in seventh at $0.85 trillion, graphics chipmaker Nvidia was eighth at $0.77 trillion, followed by re-insurer/conglomerate Berkshire Hathaway at $0.57 trillion.

Closing out the list, United Healthcare had a market cap of just under $0.50 trillion, edging out JP Morgan Chase (NYSE: JPM), which it replaced in the S&P 500's top 10 stocks since our August 2021 update.

References

Standard and Poor. S&P 500 Index Earnings and Estimates. [Excel Spreadsheet]. Accessed 31 December 2021.

Standard and Poor. S&P Market Attributes. [Excel Spreadsheet]. Accessed 31 December 2021.

Slickcharts. S&P 500 Companies by Weight. [Online Database]. Accessed 31 December 2021.

Ycharts. S&P 500 Market Cap. [Online Database]. Accessed 31 December 2021.

U.S. New Home Market Shrinks in October 2021

The market for new homes in the U.S. shrank in October 2021. The initial estimate of the market cap itself for the month is $28.31 billion, which is 0.9% less than one year ago, and 6.0% below December 2020's peak of $30.12 billion.

Trailing Twelve Month Average New Homes Sales Market Capitalization, January 1976-October 2021

The market for new homes in the U.S. has shrunk in both real and nominal terms.

Meanwhile, the annualized number of new homes being sold in the U.S. has nearly dropped to levels last seen in December 2019.

Trailing Twelve Month Average U.S. New Homes Sales, January 1976-October 2021

The shrinking new home market represents a source of headwinds for the U.S. economy in 2021. We'll follow up with a look at the affordability trends for new homes later this week.

References

U.S. Census Bureau. New Residential Sales Historical Data. Houses Sold. [Excel Spreadsheet]. Accessed 24 November 2021. 

U.S. Census Bureau. New Residential Sales Historical Data. Median and Average Sale Price of Houses Sold. [Excel Spreadsheet]. Accessed 24 November 2021. 

Stagnation Settling in New Home Market

The U.S. new homes market is showing signs of stagnation. That can be seen in the trend for the market capitalization of new homes sold in the U.S., which moved sideways from August to September 2021. The initial estimate of the market cap itself for September 2021 is $29.35 billion.

Trailing Twelve Month Average New Homes Sales Market Capitalization, January 1976-September 2021

By this measure, the U.S. new home market last peaked in December 2020 at $30.12 billion. Since then, the market for new homes in the U.S. has shrunk in both real and nominal terms.

Speaking of real shrinkage, the number of new homes being sold in the U.S. has continued to decline from its November 2020 peak.

Trailing Twelve Month Average U.S. New Homes Sales, January 1976-September 2021

The market cap for new homes however is only managing to tread water because the average prices of new homes sold is escalating at its fastest pace on record.

Trailing Twelve Month Average Mean New Home Sale Price in U.S., January 1976-September 2021

The new home market has become a source of headwinds for the U.S. economy in 2021.

References

U.S. Census Bureau. New Residential Sales Historical Data. Houses Sold. [Excel Spreadsheet]. Accessed 26 September 2021. 

U.S. Census Bureau. New Residential Sales Historical Data. Median and Average Sale Price of Houses Sold. [Excel Spreadsheet]. Accessed 26 September 2021. 

Falling Trend for New Home Sales Continues

The trend in the number of new homes sold in the U.S. continues to fall. According to the U.S. Census Bureau's data on new home sales, the falling trend began after sales peaked in November 2020.

Trailing Twelve Month Average U.S. New Homes Sales, January 1976-August 2021

The market capitalization of U.S. new homes last peaked in December 2020 at $30.12 billion, a figure that has now been finalized with the latest revisions. Since that time, the market capitalization has fallen back from that level, but its overall trend has generally ranged between $28.84 billion and its December 2020 peak.

Trailing Twelve Month Average New Homes Sales Market Capitalization, January 1976-August 2021

That outcome for the market cap of new homes is possible because the average sale price of new homes has continued to escalate, even as the number of sales falls.

Within the raw data, the number of new home sales has ticked up during the past two months, but not by enough to affect the general trend at this time.

Summer 2021 Snapshot of the S&P 500’s Market Cap

It's a good week for S&P 500 (Index: SPX) snapshots, where we're focusing on the index' market capitalization in this update.

But not just of the index as a whole. We've also identified the Top 10 firms making up the 505 stocks that make up the current composition of the S&P 500, where we find they collectively account for 27.8% of the index' entire market capitalization of $31.75 trillion.

S&P 500 Market Capitalization, Snapshot on 13 August 2021

The other 495 firms in the S&P 500 have a collective market capitalization of $26.8 trillion. That figure, coincidentally, was the entire market capitalization of all the companies of the S&P 500 back on 31 July 2020!

Here's the list of the top 10 components of the S&P 500 index:

  • Apple (NASDAQ: AAPL)
  • Microsoft (NASDAQ: MSFT)
  • Amazon (NASDAQ: AMZN)
  • Facebook (NASDAQ: FB)
  • Alphabet (A) (NASDAQ: GOOGL)
  • Alphabet (C) (NASDAQ: GOOG)
  • Tesla (NASDAQ: TSLA)
  • Berkshire Hathaway (B) (NYSE: BRK.B)
  • Nvidia (NASDAQ: NVDA)
  • JP Morgan Chase (NYSE: JPM)

The top two firms, Apple and Microsoft, have market caps in excess of $2 trillion each. Amazon, which ranks third, has a market cap of nearly $1.4 trillion. If we combine the market cap for the two classes of Alphabet stocks, the firm formerly known as Google would have a market cap in excess of $1.5 trillion. Separately, both Alphabet stocks fall below Facebook, which ranks fourth among the individual stock listings, having a market cap in excess of $854 billion.

Dropping down the list, Tesla has surged into the Top 10 of the S&P 500's components since our last snapshot from August 2020. Nvidia also joins the list in this edition.

Meanwhile Berkshire Hathaway carries over, but Johnson & Johnson has dropped out of the top ten, replaced by JP Morgan Chase.

References

Slickcharts. S&P 500 Companies by Weight. [Online Database]. Accessed 15 August 2021.

Ycharts. S&P 500 Market Cap. [Online Database]. 31 July 2020. Accessed 15 August 2021.