U.S. Equity Market Radar (April 1, 2013)
The S&P 500 continued its strong run and rose to the highest levels since late 2007. The healthcare and utilities sectors led the way and were far and away the best performers. Traditionally defensive areas have outperformed this year and that trend continued this week.
Strengths
- The healthcare sector was led by biotech stalwarts Biogen Idec, Gilead Sciences, and Amgen.
- Thirty of the 31 companies in the S&P 500 Utilities Index moved higher this week as investors continue to favor dividend payers with U.S.-centric revenue exposure.
- GameStop jumped 9 percent and was the best performer in the S&P 500 after reporting fourth-quarter earnings that topped analystsâ forecasts. The company showed better-than-expected strength in digital and mobile games.
Weaknesses
- Apple fell by 4.2 percent, reversing gains from last week.
- First Solar fell 6.5 percent, giving up the bulk of its gains from last week.
- Cliffs Natural Resources declined 8.4 percent this week on continued downgrades from industry analysts, related to global iron ore pricing.
Opportunity
- The market continues to be resilient regardless of the news out of Europe and the market is climbing the proverbial wall of worry.
- The Federal Reserve Bank stated that it intends to maintain its asset purchase program in order to further stimulate job growth and boost the economy.
Threat
- A market consolidation wouldnât be a surprise after a strong start to the year.
