Week ending Nov. 24: Two high-profile equity deals boost small-, mid-cap indexes.
Fears of inflation eased as crude oil prices dropped and unemployment figures rose modestly last week. With signs of inflation under control and a possible slowdown in the U.S. economy, the Fed is likely to leave interest rate unchanged at this week's meeting of the Open Markets Committee. Markets reacted positively, and the Morningstar US Market Index rose 1% for the week ending Dec. 8.
The Morningstar Market Barometer was all green as the nine style indexes posted gains. The Morningstar Large Value Index posted lackluster gains--up 0.38% for the week--because of a pull back in energy sector stocks and Pfizer's precipitous drop. Small-cap stocks look certain to finish the year ahead of mid- and large-cap stocks; the Morningstar Small Cap Index adding 1.5% last week. The Morningstar Small Growth Index took the top spot with a 2% gain.
Medical equipment maker Kyphon