U.S. Equity Market Radar (February 27, 2012)
The S&P 500 Index managed modest gains this week, rising 0.37 percent with the energy sector leading the way as oil prices approached $110.
Strengths
- The S&P 500 energy sector was led by Nabors Industries and Denbury Resources which both reported earnings this week that were well received by the market.
- In technology, Apple continues to be a leader, rising 4 percent while Visa and Mastercard were also among the best performers this week on changes in credit and debit card processing fees.
- In the S&P 500 telecommunications services sector, Metro PCS rose 16 percent this week on a strong earnings report, while Sprint rose by 7 percent on news that T-Mobile will not offer the iPhone in the U.S this year.
Weaknesses
- Financials were the worst performers this week as banks were weak across the board.
- Consumer discretion also fell for the week as many housing and auto-related areas were weak.
- First Solar was the worst performer in the S&P 500 this week, as a draft renewable energy bill in Germany was worse than expected, and the stock fell by more than 16 percent.
Opportunities
- The market has been able to shrug off every negative and climb the wall of worry.
Threats
- After such a strong start to the year a pullback or consolidation in the market would not be surprising.
