The Week in Stocks and Funds
Tech stocks melt in the August heat.
Not only did the brutal August sun scorch most of the United States this week, but a horde of dreary earnings reports from companies like Cisco (CSCO) smothered hopes of a near-term economic turnaround. As such, the Dow Jones Industrial Average lost 96 points over the week to close at 10,416, while the S&P 500 shed 24 points to finish at 1,190. The Nasdaq Composite index fared the worst, losing 110 points, or 5%, to end at 1,956.
Fund Category Returns
Specialty-technology funds wilted in this week's heat wave, losing 7.9% on average this week through Thursday. Funds like Berkshire Focus (BFOCX) did even worse than their tech-focused peers by holding duds like Brocade Communications Systems (BRCD), a one-star stock that Morningstar senior analyst Joseph Beaulieu thinks investors would be better off avoiding.
Frank Stanton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.