Market Wrap: Stocks Up 3.7%, Led by Technology

Stock Market Update for the Trading Week Ended Aug. 7

• The Morningstar US Total Market Index rose 3.69%.
• The best-performing sectors were technology, up 7.30%, and basic materials, up 6.33%.
• The worst-performing sectors were energy, down 3.44%, and utilities, down 1.33%.
• Large-cap stocks gained 3.66%, mid-cap stocks rose 2.18%, and small-cap stocks rose 3.71%.
• Growth stocks gained 5.05%, blend stocks gained 3.67%, and value stocks rose 2.02%.
• The S&P 500 gained 3.58%, and the Nasdaq rose 5.19%.
• Of the 883 US-listed companies covered by Morningstar, 613, or 69%, were up, one was unchanged, and 267, or 30%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes fell to 4.65% from 4.75%.
• Yields on 2-year US Treasury notes fell to 4.19% from 4.28%.
• West Texas Intermediate crude prices fell 11.22% to $77.06 per barrel.
• Comex Gold prices rose 7.33% to $4,346.40.

Top Stock Gainers

Atlassian TEAM, Palantir Technologies PLTR, WPP WPP, Paycom PAYC, and Shopify SHOP were the top performers among US-listed stocks covered by Morningstar analysts.

• Atlassian topped the list, rising 47.57%, and it’s up 24.07% over the past three months. This narrow-moat company with a 5-star rating has decreased 40.61% over the past 12 months. The stock closed the week at $149.07, trading at a 50% discount to its fair value estimate of $220.00 per share.
• Palantir was the second-best performer, with a weekly return of 39.75%. The 3-star stock has gained 16.54% over the last three months. Shares in this narrow-moat company are down 13.16% over the past 12 months. Palantir stock wrapped up the week at $172, trading near its fair value estimate of $153 per share.
• WPP ranked third for the week, rising 36.32%. The 2-star, no-moat stock has gained 42.75% over the last three months and 0.60% over the past 12. WPP stock closed at $27.55, trading at a 25% premium to its fair value estimate of $20.79 per share.
• The fourth-best-performing stock was no-moat Paycom, which gained 31.09%. The 2-star stock has gained 71.21% over the last three months but is down 2.59% over the past 12 months. Paycom finished the week at $214.94, trading at a 27% premium to its fair value estimate of $170.00 per share.
• Shopify stock climbed 29.41% in the latest week. This narrow-moat company has seen a 39.83% increase over the last three months but a 4.82% decline over the past 12. The 3-star stock ended the week at $151.60 per share, trading near its fair value estimate of $145.00.

Top Stock Losers

Cogent Communications Holdings CCOI, TripAdvisor TRIP, Trade Desk TTD, DaVita DVA, and Western Digital WDC did the worst among US-listed stocks covered by Morningstar analysts.

• Cogent was the worst-performing stock of the week, falling 26.52%. This 4-star, narrow-moat company has fallen 34.14% over the past three months and fell 72.69% over the past 12 months. The stock ended the week at $9.92, trading at a 36% discount to its fair value estimate of $17.00 per share.
• TripAdvisor took the second spot, with a 23.93% price decline this week. The no-moat company, rated 4 stars, has fallen 6.80% over the past three months and is down 36.77% over the past 12 months. Closing at $10.78, the stock trades at a 31% discount to its fair value estimate of $15.00 per share.
• Trade Desk came in third, experiencing a 23.5% drop this week. This 3-star, no-moat company has fallen 26.41% over the past three months and fell 80.27% over the past 12 months. The stock finished the week at $13.80, trading at a 16% discount to its fair value estimate of $21.00 per share.
• Next up is DaVita, which fell 23.46% this week. The narrow-moat company with a 3-star rating has fallen 6.81% over the past three months but rose 41.36% over the past 12 months. At $183.77, the stock trades at a 9% premium to its fair value estimate of $165.00 per share.
• Western Digital rounds out the list with a 20.3% decline this week. This 3-star, no-moat company has fallen 6.52% over the past three months but rose 512.66% over the past 12 months. The stock closed the week at $434, trading at an 8% premium to its fair value estimate of $420 per share.

Highlights of This Week’s Market and Investing Events

• Tuesday, Aug. 11: July Existing Home Sales
• Wednesday, Aug. 12: July Consumer Price Index report, earnings from Cisco Systems CSCO
• Thursday, Aug. 13: Initial Unemployment Insurance Claims, July Producer Price Index report
• Friday, Aug. 14: June Business Inventories, August Preliminary University of Michigan Index of Consumer Sentiment