Week ending April 13: Markets advance as positive earnings news overcome lingering concerns about economy.
Markets advanced modestly last week as positive earnings news overcame lingering concern on the economic front. The Morningstar US Market Index rose 0.68% through the week ending April 13. The fallout from the subprime meltdown continues to haunt financial services stocks, and hopes of a Federal Reserve interest rate cut anytime soon have faded due to sticky inflation numbers. Markets took heart from the steady trickle of decent earnings news and merger activity, however.
All nine Morningstar style indexes finished in positive territory. Growth indexes cemented their lead over core and value counterparts for the year, capped by the Morningstar Small Growth Index's 1.08% gain. The Morningstar Mid Value Index finished last with a 0.39% return for the week.
The Morningstar Small Growth Index was boosted by ValueClick
The Morningstar Mid Value Index's detractors included airline stocks AMR