S&P 500 Caps Best Weekly Gain Since July 2009 on Retail
U.S. Equity Market Cheat Sheet (October 17, 2011)
The domestic stock market as measured by the S&P 500 Index was higher this week by 5.98 percent. All ten sectors increased. The best-performing sector for the week was energy which increased 8.75 percent. Other top-three sectors were technology and materials. Utilities was the worst performer, up1.68 percent. Other bottom-three performers were consumer staples and healthcare.
Within the energy sector the best-performing stock was Denbury Resources, up 22.01 percent. Other top-five performers were Range Resources, Valero Energy, Tesoro Corp, and Alpha Natural Resources.
Strengths
- The consumer electronics group was the best-performing group for the week, gaining 23 percent, led by its single member, Harman International Industries.
- The tires & rubber group outperformed, gaining 19 percent on the strength of its single member, Goodyear Tire & Rubber Co.
- The oil & gas refining & marketing group increased 16 percent with all four members of the group rising.
Weaknesses
- The household products group underperformed gaining 2 percent. All four members of the group rose in low-single-digit percentages.
- The electric utility and the multi-utility groups both rose 2 percent.
- The brewers group gained 2 percent, led by its single member, Molson Coors Brewing Co.
Opportunities
- There may be an opportunity for a gain in merger & acquisition (M&A) transactions in 2011. Corporate liquidity is high, thereby providing the means to pursue acquisitions.
Threats
- A mid-cycle slowdown in the domestic economy would be negative for stocks.
- An escalation in concerns over sovereign debt obligations in Europe would be negative for stocks.
