Week ending Nov. 17: Moderate inflation, lower energy prices push market highter.
Investors looked beyond a dramatic downturn in the housing market--new housing starts for October dropped 16%--and instead focused on signs of moderating inflation and lower energy prices to push the Morningstar US Market Index higher by 1.6% for the week ending Nov. 17. The US Market Index is up 3% for the past two weeks and 14.1% for the year.
The Morningstar Market Barometer was green across the board as all nine Morningstar style indexes gained ground for the second week in a row. Large-cap growth stocks continue to gain in strength over large-cap value stocks. The Morningstar Large Growth Index, which trails the Morningstar Large Value Index by 15% for the year, is steadily catching up, gaining 1.9% in the past two weeks alone.
The Morningstar Small Value Index was the best performer among the nine Morningstar style indexes. Index component Reader's Digest Association
Investors sent US Airways Group's LCC stock soaring 20.6% after the nation's fifth largest airline made a bid to become the largest by acquiring bankrupt Delta Air Lines