Week ending July 28
Markets rebounded amid news of slower GDP growth rate in the second quarter, lending more support to a likely freeze in interest rate hikes by the Federal Reserve Bank. The Morningstar US Market Index finished the week ending July 28 with an impressive gain of 3.25%.
The Morningstar Market Barometer was a sea of green, as all nine Morningstar style indexes finished the week in positive territory. In a week led by corporate earnings announcements from several bellwether stocks, companies exceeding or falling short of their earnings projections dominated the winners and losers list. General Motors, Ford, ExxonMobile, AT&T, Merck, and Pfizer posted close to 10% gains for the week on the back of strong earnings. Meanwhile, Aetna, Amazon, United Parcel Service, Corning, and Dow Chemicals topped the losers list after posting disappointing results.
The Morningstar Small Core Index was the best performer for the week with a gain of 4.4%. Technitrol, an electronics component manufacture, saw its shares jumped 23% after a strong second quarter earnings report, turning around a loss from the previous year. Likewise, NBTY, a manufacturer of nutritional supplements, jumped 18% on strong earnings.