Weekly Markets Wrap: Stocks Fall 2%, Led by Communication Services and Tech

Stock Market Update for the Trading Week Ended March 27

• The Morningstar US Market Index fell 2.03%.
• The best-performing sectors were energy, up 6.12%, and basic materials, up 4.23%.
• The worst-performing sectors were communication services, down 4.46%, and technology, down 3.51%.
• Large-cap stocks fell 2.73%, mid-cap stocks fell 0.26%, and small-cap stocks rose 0.06%.
• Growth stocks fell 3.34%, blend stocks fell 1.60%, and value stocks rose 0.55%.
• The S&P 500 fell 2.12%, and the Nasdaq fell 3.23%.
• Of the 835 US-listed companies covered by Morningstar, 373, or 45%, were up, three were unchanged, and 459, or 55%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 4.44% from 4.39%.
• Yields on 2-year US Treasury notes remained unchanged at 3.88%.
• West Texas Intermediate crude prices rose 2.25% to $100.30 per barrel.
• Comex Gold prices rose 0.30% to $4,505.50.

Top Stock Gainers

FMC FMC, Brown-Forman BF.B, Optimum Communications OPTU, Sociedad Quimica Y Minera De Chile SQM and Sabre SABR were the top performers among US-listed stocks covered by Morningstar analysts.

• FMC topped the list, rising 20.32%, and it’s up 16.08% over the past three months. This narrow-moat company with a 4-star rating has decreased 58.54% over the past 12 months. The stock closed the week at $15.75, trading at a 37% discount to its fair value estimate of $25.00 per share.
• Brown-Forman was the second-best performer, with a weekly return of 19.25%. The 4-star stock has lost 0.84% over the last three months. Shares in this wide-moat company are down 22.02% over the past 12 months. Brown-Forman stock wrapped up the week at $27.19, trading at a 30% discount to its fair value estimate of $37.00 per share.
• Optimum ranked third for the week, with its stock rising 16.39%. The 3-star, no-moat stock has fallen 17.47% over the last three months and 51.59% over the past 12 months. Optimum stock closed at $1.42, trading at a 24% discount to its fair value estimate of $1.80 per share.
• The fourth-best-performing stock was narrow-moat SQM, which gained 16.25%. The 3-star stock has gained 8.00% over the last three months and is up 85.90% over the past 12 months. SQM finished the week at $82.72, trading near its fair value estimate of $80.00 per share.
• Sabre climbed 15.15% in the latest week. This no-moat company has seen an increase of 10.07% over the last three months but a decline of 53.92% over the past 12 months. The 4-star stock ended the week at $1.52 per share, trading at a 24% discount to its fair value estimate of $2.02.

Top Stock Losers

Estée Lauder EL, Coinbase Global COIN, Celsius Holdings CELH, Wingstop WING, and Tenable TENB did the worst among US-listed stocks covered by Morningstar analysts.

• Estée Lauder was the worst-performing stock of the week, falling 21.75%. This 4-star, wide-moat company has fallen 34.88% over the past three months but has risen 7.98% over the past 12 months. The stock ended the week at $67.23, trading at a 42% discount to its fair value estimate of $120.00 per share.
• Coinbase took the second spot, with a 18.41% price decline this week. The no-moat company, rated 3 stars, has fallen 26.81% over the past three months and 10.61% over the past 12 months. Closing at $161.14, the stock trades at an 8% premium to its fair value estimate of $160.00 per share.
• Celsius came in third, experiencing a 18.22% drop this week. This 3-star, no-moat company has fallen 21.93% over the past three months but has risen 1.98% over the past 12 months. The stock finished the week at $33.94, trading at an 11% discount to its fair value estimate of $40.00 per share.
• Next up is Wingstop, which saw its stock price fall by 17.73% this week. The narrow-moat company with a 3-star rating has fallen 39.12% over the past three months and 28.83% over the past 12 months. At $154.53, the stock trades at an 8% premium to its fair value estimate of $144.00 per share.
• Tenable rounds out the list with a 16.63% decline this week. This 3-star, no-moat company has fallen 24.11% over the past three months and 49.78% over the past 12 months. The stock closed the week at $16.54, trading at a 20% discount to its fair value estimate of $23.00 per share.

Highlights of This Week’s Market and Investing Events

• Tuesday, March 31: March Chicago PMI, March Consumer Confidence Survey, February Job Openings and Labor Turnover Survey
• Wednesday, April 1: March ADP Employment Survey, February Retail Sales (month to month), January Business Inventories (month to month), March ISM Manufacturing
• Thursday, April 2: Initial Unemployment Insurance Claims report for the week ended March 28
• Friday, April 3: Markets closed in observance of Good Friday, March Employment Situation Report