The Week in Stocks and Funds
A falling Consumer Price Index tugs the markets down.
For the average consumer, the announcement this week that the Consumer Price Index (CPI) had fallen 0.3% in July was reason to cheer. It wasn't great news, however, for the stock market, since a falling CPI indicates companies haven't been able to raise prices for their products, which eventually could crimp their profit margins. For the week, the Dow Jones Industrials Average fell 175 points to 10,240, the S&P 500 dropped 29 points to 1,161, and the Nasdaq Composite lost 89 points, or 4.5%, to finish at 1,867.
Fund Category Returns
The American Gas Association reported Wednesday that natural gas storage levels are much lower than expected. Since low supply usually leads to higher prices, energy stocks rallied. That, in turn, boosted natural resources sector funds up 3.45% on average for the week through Thursday. Some of the best-performing funds in that group included Fidelity Select Energy Service [ticker FSESX ], up 6.07%, and State Street Research Global (SSGRX), up 4.93% for the week through Thursday.
Frank Stanton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.