Weekend Market X-Ray: Stocks End Week Fairly Flat
Concerns over the global global economy weighed against bullish retail news this week.
Market Update
U.S. equity markets ended fairly flat this week as investor bullishness on retail news Monday gave way to renewed concerns Thursday about the global economy and sovereign debt ratings. Commodities were positive for the week on price improvements in energy, agriculture, and precious metals.
The Morningstar US Market Index ended the week about where it started. A strong rally Monday on positive earnings news from Lowe's lifted equity markets nearly 3%. Investors saw the news as positive for consumer spending stabilization and housing-related firms. Rising oil prices stimulated buying in energy stocks, while incremental improvements in financial services firms boosted returns in that sector as well.
Small value rebounded a bit from last week's steep drop. The Morningstar Small Value Index was up around 1% thanks to strong stock returns at Health Management Associates and Warner Music Group, offsetting steep losses at a handful of smaller banks. The Morningstar Global Equity Index family continued to rebound this week with returns in the mid-single digits.
The Morningstar Core Bond Index was down modestly this week as U.S. Treasury prices continued to slip. The Morningstar US Government Bond Index was down nearly 1% as buyers waited for lower prices (and higher yields) to compensate them for the additional risk of holding bonds issued by a nation rapidly increasing its debt load. Standard & Poor's Thursday issued a negative outlook for the U.K.'s triple-A rating, a sobering event given the country has some similarities to the U.S.
The Morningstar Long-Only Commodity Index was modestly positive this week as agricultural commodity prices for coffee and soybeans continued to rise. Oil rose on ongoing optimism about renewed demand.
| Bond Index One-Week Returns (Data as of 05-21-09) | |||
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| 1 Wk | Yield | Duration |
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| Core Bond | -0.38 | 3.22 | 4.19 |
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| US Government Bond | -0.85 | 2.13 | 4.84 |
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| Corporate Bond | -0.06 | 5.92 | 5.49 |
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| Mortgage Bond | -0.09 | 2.90 | 2.89 |
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| Commodity Index One-Week Returns (Data as of 05-21-09) | ||
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| 1-Week Return % | YTD Return % | |
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| Long-Only Commodity | 0.80 | 7.41 |
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| Long/Flat Commodity | 0.78 | 0.40 |
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| Long/Short Commodity | 0.89 | -6.89 |
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For more information, call +1 312 384-3735. Daily updates and historical values are available at http://indexes.morningstar.com