NFIB Small Business Optimism Soars. Here Are Some Companies That May Benefit

On Tuesday, the NFIB Small Business Optimism Index reached a high not seen since 1983. The Index came in at 107.8 vs expectations of 105.  What does this mean? To me, it means that small businesses are feeling pretty good about the current environment and to take it a step further, they may be investing money in infrastructure and software expenses.

source: Bloomberg 

Which companies may benefit? Enterprise and Application Software Companies

Companies in this group include, salesforce.com, inc. (NASDAQ: CRM), Adobe Systems Incorporated (NASDAQ: ADBE), Workday Inc (NASDAQ: WDAY), Zendesk  Inc (NYSE: ZEN), ServiceNow Inc (NYSE: NOW), and HubSpot Inc (NASDAQ: HUBS) 

Another way to play this theme is through the Invesco Dynamic Software ETF (NYSE: PSJ).

source: Bloomberg