U.S. Equity Market Radar (April 9, 2012)
The S&P 500 Index fell 0.74 percent this week driven in large part by cyclical sectors as concerns mounted over a global economic slowdown.
Strengths
- Within the S&P 500 Avon Products was the best performer, rising by more than 20 percent as Coty, Inc. is seeking to buy Avon for $10 billion.
- Bed Bath & Beyond was the second-best performer this week rising by more than 9 percent on a better-than-expected fourth quarter earnings report.
- The technology sector eked out a small gain as Apple, Priceline and Mastercard were among the best performers in the S&P 500 this week.
Weaknesses
- The energy sector was the worst performer this week as global macro concerns dominated, even though oil prices were roughly flat for the week.
- The financial sector was also weak as macro concerns surrounding Europe and European banks resurfaced.
- First Solar was the worst performer this week, falling by more than 16 percent as the solar industry faces many obstacles.
Opportunities
- The market continues to grind higher irrespective of recent news. The “trend is your friend” until this pattern changes.
Threats
- The S&P 500 is arguably overbought in the short term and could be vulnerable to profit-taking.
