Market Wrap: Stocks Slip as Energy Rises and Consumer Cyclicals Fall

Stock Market Update for the Trading Week Ended July 24

• The Morningstar US Market Index fell 0.6%.
• The best-performing sectors were energy, up 3.37%, and utilities, up 2.3%.
• The worst-performing sectors were consumer cyclicals, down 5.48%, and communication services, down 3.94%.
• Large-cap stocks fell 0.87%, mid-cap stocks rose 0.30%, and small-cap stocks fell 0.47%.
• Growth stocks fell 0.15%, blend stocks fell 1.22%, and value stocks rose 1.18%.
• The S&P 500 fell 0.61%, and the Nasdaq fell 2.13%.
• Of the 836 US-listed companies covered by Morningstar, 378, or 45%, were up, one was unchanged, and 456, or 55%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 4.69% from 4.55%.
• Yields on two-year US Treasury notes rose to 4.33% from 4.18%.
• West Texas Intermediate crude prices rose 9.82% to $90.57 per barrel.
• Comex Gold prices rose 0.98% to $4,056.40.

Top Stock Gainers

Tenet Healthcare THC, RingCentral RNG, SK Telecom SKM, Lockheed Martin LMT, and Digital Realty DLR were the top performers among US-listed stocks covered by Morningstar analysts.

• Tenet topped the list, rising 19.64%, and it’s up 5.68% over the past three months. This narrow-moat company with a 4-star rating has increased 25.72% over the past 12 months. The stock closed the week at $233.20, trading at a 17% discount to its fair value estimate of $285.00 per share.
• RingCentral was the second-best performer, with a weekly return of 16.92%. The 3-star stock has gained 0.17% over the last three months. Shares in this no-moat company are up 38.76% over the past 12 months. RingCentral stock wrapped up the week at $48.31, trading at a 14% discount to its fair value estimate of $45.00 per share.
• SK Telecom ranked third for the week, rising 16.49%. The 4-star, no-moat stock has fallen 6.47% over the last three months but gained 58.42% over the past 12 months. SK Telecom stock closed at $35.67, trading at a 21% discount to its fair value estimate of $44.70 per share.
• The fourth-best-performing stock was wide-moat Lockheed Martin, which gained 14.51%. The 4-star stock has gained 7.97% over the last three months and is up 38.83% over the past 12 months. Lockheed Martin finished the week at $582.60, trading at a 13% discount to its fair value estimate of $650.00 per share.
• Digital Realty climbed 14.49% in the latest week. This no-moat company has seen a decrease of 9.72% over the last three months but a rise of 2.78% over the past 12 months. The 3-star stock ended the week at $199.08 per share, trading near its fair value estimate of $190.00.

Top Stock Losers

Rapid7 RPD, Tenable TENB, Swatch Group SWGAY, Tesla TSLA, and STMicroelectronics STM did the worst among US-listed stocks covered by Morningstar analysts.

• Rapid7 was the worst-performing stock of the week, falling 22.21%. This 3-star, no-moat company has risen 65.40% over the past three months but fell 58.18% over the past 12 months. The stock ended the week at $9.49, trading near its fair value estimate of $10 per share.
• Tenable took the second spot, with a 19.17% price decline this week. The no-moat company, rated 2 stars, has risen 62.32% over the past three months but fell 5.44% over the past 12 months. Closing at $32.25, the stock trades at a 37% premium to its fair value estimate of $23.00 per share.
• Swatch came in third, experiencing a 18.95% drop this week. This 4-star, narrow-moat company has fallen 5.53% over the past three months but rose 11.43% over the past 12 months. The stock finished the week at $10.31, trading at a 20% discount to its fair value estimate of $13.30 per share.
• Next up is Tesla, which fell 17.79% this week. The narrow-moat company with a 4-star rating has fallen 14.46% over the past three months and is down 3.87% over the past 12 months. At $313.03, the stock trades at a 29% discount to its fair value estimate of $450.00 per share.
• STMicro rounds out the list with a 17.10% decline this week. This 4-star, narrow-moat company has risen 7.79% over the past three months and rose 69.50% over the past 12 months. The stock closed the week at $51.54, trading at a 26% discount to its fair value estimate of $72.00 per share.

Highlights of This Week’s Market and Investing Events

• Tuesday, July 28: July Consumer Confidence Survey, earnings from Coca-Cola KO, Boeing BA, Tilray Brands TLRY, Ford Motor F, Visa V
• Wednesday, July 29: July Federal Open Market Committee, earnings from SoFi Technologies SOFI, Procter & Gamble PG, Meta Platforms META, Microsoft MSFT
• Thursday, July 30: Q2 GDP, Initial Unemployment Insurance Claims, June Personal Income and Outlays report, earnings from Sirius XM SIRI, Roblox RBLX, Apple AAPL, Amazon AMZN
• Friday, July 31: July Chicago PMI, earnings from AbbVie ABBV