American Stocks Dominate Global Equities
August 28, 2012 by Trey Thoelcke
More American companies are among the 20 largest in the world than at any time in the past decade. This is because earnings at U.S. companies have risen faster than the rest of the world as the global economy has rebounded.
Apple Inc. (NASDAQ: AAPL), International Business Machines Corp. (NYSE: IBM) and Wells Fargo & Co. (NYSE: WFC) are among the U.S. companies that have joined the top 20 since stocks peaked in 2007, bringing the number to 14.
Earnings at the American companies new to the list rose 40% during the past four years. The 14 largest U.S. companies together earned $248.4 billion in the past 12 months, and their market value climbed to $3.57 trillion, which is about the size of Germany’s gross domestic product in 2011.
PetroChina Co. Ltd. (NYSE: PTR), formerly at the top of the list, has dropped to number four with a market capitalization of $251.7 billion. Irving, Texas-based Exxon Mobil Corp. (NYSE: XOM), the second-biggest company, is valued at $406.4 billion. Apple became the most valuable company ever as the stock rose to $668.87 on August 22, giving the iPhone and iPad maker a value of $627 billion.
The number of Chinese companies has since fallen from six to three amid the weakest Chinese growth since 2009. Those from Brazil, Russia, the United Kingdom and France have fallen from the top 20. American companies have gained strength also in part because of Europe’s sovereign debt crisis.
Chevron Corp. (NYSE: CVX), Wal-Mart Stores Inc. (NYSE: WMT), Johnson & Johnson (NYSE: JNJ) and Pfizer Inc. (NYSE: PFE) also rose to the top 20 largest companies.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.