Week ending May 11: Market treads water amid weak retail sales.
Markets treaded water last week. The Morningstar US Market Index rose 0.09% for the week ending May 11, barely preserving its multiweek winning streak. Weak retail sales numbers caused concern for investors, but new data on producers' prices also indicated an unexpected drop in inflation, which raised hopes of interest rate cuts in the near future.
Morningstar's nine style indexes produced mixed results. It was a bad week for growth and small-cap stocks in general, with the Morningstar Small Growth Index faring the worst as it slid 0.62%. The Morningstar Mid Core Index took the top spot with a 0.69% gain, helping cement a healthy year-to-date lead for mid-cap stocks.
Foster Wheeler FWLT, a builder of manufacturing facilities worldwide, reported record first-quarter 2007 earnings. The stock surged 36% after the announcement. The strength of global manufacturing and industrial activity was also displayed by first-quarter results from power-generation and offshore industrial equipment-maker McDermott International MDR. McDermott's stock rose 20%, as revenue and profits were much better than expected.
World Fuel Services INT stock fell more than 15% after reporting a slide in net income due to a sharp decline in jet fuel prices. The 9% decline of online travel agency Priceline.com PCLN also detracted from the Morningstar Small Growth index. The stock suffered after a litigation settlement widened Priceline.com's net loss.
For a more in-depth look into market performance, view the PDF report U.S. Market Overview. Data for all Morningstar Indexes are available here.