Market Wrap: Stocks Fell as Healthcare and Basic Materials Declined

Stock Market Update for the Trading Week Ended Sept. 11

• The Morningstar US Total Market Index fell 0.93%.
• The best-performing sectors were energy, up 1.44%, and communication services, up 0.28%.
• The worst-performing sectors were healthcare, down 3.38%, and basic materials, down 2.69%.
• Large-cap stocks fell 0.74%, mid-cap stocks fell 1.58%, and small-cap stocks fell 2.21%.
• Growth stocks fell 0.62%, blend stocks fell 0.9%, and value stocks fell 1.3%.
• The S&P 500 fell 0.8%, and the Nasdaq fell 0.66%.
• Of the 886 US-listed companies covered by Morningstar, 191, or 22%, were up, two were unchanged, and 692, or 78%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 4.95% from 4.78%.
• Yields on 2-year US Treasury notes rose to 4.56% from 4.37%.
• West Texas Intermediate crude prices rose 9.91% to $100.26 per barrel.
• Comex Gold prices fell 2.19% to $4,378.60.

Top Stock Gainers

Hewlett Packard Enterprise HPE, Skyworks Solutions SWKS, Qorvo QRVO, Nokia NOK, and Cloudflare NET were the top performers among US-listed stocks covered by Morningstar analysts.

• Hewlett Packard topped the list, and it’s up 19.40%. The 3-star stock has gained 21.70% over the last three months. Shares in this no-moat company are up 128.22% over the past 12 months. Hewlett Packard stock wrapped up the week at $62.08, trading at a 16% discount to its fair value estimate of $66.00 per share.
• Skyworks was the second-best performer, rising 19.37%, and it’s up 19.55% over the past three months. This no-moat company with a 2-star rating has increased 17.07% over the past 12 months. The stock closed the week at $88.37, trading at a 24% premium to its fair value estimate of $68.00 per share.
• Qorvo ranked third for the week, with its stock rising 13.44%. The 3-star, no-moat stock has gained 18.27% over the last three months and gained 25.98% over the past 12 months. Qorvo closed at $116.66, trading at a 23% premium to its fair value estimate of $91.00 per share.
• The fourth-best-performing stock was no-moat Nokia, which gained 10.97%. The 2-star stock has fallen 20.40% over the last three months but is up 135.96% over the past 12 months. Nokia finished the week at $11.14, trading at a 25% premium to its fair value estimate of $8.50 per share.
• Cloudflare stock climbed 9.90%. This wide-moat company has increased 41.65% over the last three months and risen 39.56% over the past 12 months. The 3-star stock ended the week at $306.54 per share, trading at a 17% premium to its fair value estimate of $266.00.

Top Stock Losers

Cooper Companies COO, Novartis NVS, Tandem Diabetes Care TNDM, FactSet FDS, and Amgen AMGN did the worst among US-listed stocks covered by Morningstar analysts.

• Cooper was the worst-performing stock of the week, falling 22.57%. This 4-star, narrow-moat company has fallen 19.97% over the past three months and 19.94% over the past 12 months. The stock ended the week at $53.88, trading at a 24% discount to its fair value estimate of $71.00 per share.
• Novartis took the second spot, with a 14.26% price decline this week. The wide-moat company, rated 3 stars, has fallen 7.18% over the past three months but rose 12.38% over the past 12 months. Closing at $137.17, the stock trades at a 6% premium to its fair value estimate of $130.00 per share.
• Tandem Diabetes came in third, experiencing a 14.06% drop this week. This 3-star, no-moat company has risen 12.82% over the past three months and rose 48.02% over the past 12 months. The stock finished the week at $17.11, trading at an 8% discount to its fair value estimate of $20.00 per share.
• Next up is FactSet, which fell 14.02% this week. The no-moat company with a 3-star rating has risen 6.03% over the past three months but is down 26.07% over the past 12 months. At $259.63, the stock trades at an 8% discount to its fair value estimate of $285.00 per share.
• Amgen rounds out the list with a 13.7% decline this week. This 3-star, wide-moat company has risen 13.99% over the past three months and rose 40.90% over the past 12 months. The stock closed the week at $377.24, trading at a 12% premium to its fair value estimate of $342 per share.

Highlights of This Week’s Market and Investing Events

• Wednesday, Sept. 16: August Retail Sales, July Business Inventories, Federal Reserve meeting
• Thursday, Sept. 17: August New Residential Construction, Initial Unemployment Insurance Claims, September Federal Reserve Bank of Philadelphia Index
• Friday, Sept. 18: August Capacity Utilization, August Industrial Production, August Leading Indicators