Market Wrap: Stocks Edge Higher as Technology and Communication Services Rise

Stock Market Update for the Trading Week Ended Aug. 28

• The Morningstar US Total Market Index rose 0.27%.
• The best-performing sectors were technology, up 1.64%, and communication services, up 1.05%.
• The worst-performing sectors were industrials, down 2.13%, and healthcare, down 2.06%.
• Large-cap stocks gained 0.51%, mid-cap stocks fell 0.59%, and small-cap stocks fell 1.38%.
• Growth stocks gained 1.00%, blend stocks gained 0.30%, and value stocks fell 0.62%.
• The S&P 500 gained 0.49%, and the Nasdaq rose 0.85%.
• Of the 883 US-listed companies covered by Morningstar, 370, or 42%, were up, one was unchanged, and 511, or 58%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes fell to 4.73% from 4.74%.
• Yields on 2-year US Treasury notes rose to 4.34% from 4.24%.
• West Texas Intermediate crude prices fell 3.68% to $83.45 per barrel.
• Comex Gold prices fell 3.37% to $4,453.80.

Top Stock Gainers

Okta OKTA, Salesforce CRM, Gap GAP, Elastic ESTC, and CrowdStrike Holdings CRWD were the top performers among US-listed stocks covered by Morningstar analysts.

• Okta topped the list, rising 23.01%, and it’s up 93.20% over the past three months. This no-moat company with a 3-star rating has increased 85.86% over the past 12 months. The stock closed the week at $166.23, trading at a 14% discount to its fair value estimate of $200.00 per share.
• Salesforce was the second-best performer, with a weekly return of 22.39%. The 3-star stock has gained 42.24% over the last three months. Shares in this narrow-moat company are up 1.44% over the past 12 months. Salesforce stock wrapped up the week at $256, trading at a 10% discount to its fair value estimate of $280 per share.
• Gap ranked third for the week, rising 18.59%. The 4-star, no-moat stock has fallen 12.83% over the last three months and fell 3.72% over the past 12 months. Gap stock closed at $23.48, trading at a 28% discount to its fair value estimate of $29.00 per share.
• The fourth-best-performing stock was no-moat Elastic, which gained 16.26%. The 2-star stock has gained 55.36% over the last three months and is up 0.53% over the past 12 months. Elastic finished the week at $99.91, trading at a 58% premium to its fair value estimate of $53.00 per share.
• CrowdStrike climbed 13.83% in the latest week. This wide-moat company has increased 41.29% over the last three months and is up 115.76% over the past 12 months. The 2-star stock ended the week at $218.49 per share, trading at a 50% premium to its fair value estimate of $152.00.

Top Stock Losers

Dick’s Sporting Goods DKS, IREN IREN, Hims & Hers Health HIMS, PayPal Holdings PYPL, and iQIYI IQ did the worst among US-listed stocks covered by Morningstar analysts.

• Dick’s Sporting Goods was the worst-performing stock of the week, falling 26.27%. This 4-star, narrow-moat company has fallen 39.32% over the past three months and is down 39.52% over the past 12 months. The stock ended the week at $135.09, trading at a 34% discount to its fair value estimate of $200.00 per share.
• IREN took the second spot, with a 15.35% decline this week. The no-moat company, rated 3 stars, has fallen 40.26% over the past three months but is up 81.30% over the past 12 months. Closing at $35.42, the stock trades near its fair value estimate of $41 per share.
• Hims & Hers Health came in third, experiencing a 14.65% drop this week. This 2-star, no-moat company has risen 25.63% over the past three months but fell 28.06% over the past 12 months. The stock finished the week at $28.84, trading at a 38% premium to its fair value estimate of $23.00 per share.
• Next up is PayPal, which fell 12.84% this week. The narrow-moat company with a 4-star rating has risen 40.79% over the past three months but fell 11.14% over the past 12 months. At $53.66, the stock trades at a 23% discount to its fair value estimate of $80.00 per share.
• iQIYI rounds out the list with a 12.8% decline this week. This 1-star, no-moat company has fallen 12.83% over the past three months and fell 60.85% over the past 12 months. The stock closed the week at $0.92, trading at an 85% premium to its fair value estimate of $0.50 per share.

Highlights of This Week’s Market and Investing Events

• Tuesday, Sept. 1: July Construction Spending, August ISM Manufacturing, July Job Openings and Labor Turnover Survey, earnings from MongoDB MDB, NIO NIO, Broadcom AVGO, Dell Technologies DELL
• Wednesday, Sept. 2: Federal Reserve Beige Book, earnings from Snowflake SNOW
• Thursday, Sept. 3: Initial Unemployment Insurance Claims, August ISM Services PMI, earnings from Lululemon LULU, Zscaler ZS
• Friday, Sept. 4: August Employment Situation Report