Weekly Market Update: Stocks Gain 1.1% as Utilities Rise and Consumer Defensives Fall

Stock Market Update for the Trading Week Ended May 22

• The Morningstar US Market Index rose 1.05%.
• The best-performing sectors were utilities, up 3.37%, and healthcare, up 3.18%.
• The worst-performing sectors were consumer defensives, down 0.95%, and communication services, down 0.54%.
• Large-cap stocks gained 0.61%, mid-cap stocks rose 2.25%, and small-cap stocks rose 2.18%.
• Growth stocks gained 1.70%, blend stocks gained 1.41%, and value stocks rose 2.21%.
• The S&P 500 gained 0.88%, and the Nasdaq rose 0.45%.
• Of the 875 US-listed companies covered by Morningstar, 628, or 72%, were up, three were unchanged, and 243, or 28%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes fell to 4.56% from 4.59%.
• Yields on 2-year US Treasury notes rose to 4.13% from 4.09%.
• West Texas Intermediate crude prices fell 9.01% to $96.14 per barrel.
• Comex Gold prices fell 0.31% to $4,510.20.

Top Stock Gainers

Arm ARM, Birkenstock BIRK, Blackberry BB, Guardant Health GH, and Dell Technologies DELL were the top performers among US-listed stocks covered by Morningstar analysts.

• Arm topped the list, rising 46.47%, and it’s up 137.48% over the past three months. This wide-moat company with a 1-star rating has increased 128.62% over the past 12 months. The stock closed the week at $306.35, trading at a 99% premium to its fair value estimate of $150.00 per share.
• Birkenstock was the second-best performer, with a weekly return of 32.67%. The 3-star stock has lost 2.98% over the last three months. Shares in this narrow-moat company are down 27.89% over the past 12 months. Birkenstock stock wrapped up the week at $41.38, trading at an 8% discount to its fair value estimate of $43.00 per share.
• Blackberry ranked third for the week, rising 27.79%. The 2-star, no-moat stock has gained 92.75% over the last three months and 74.08% over the past 12 months. Blackberry closed at $7.91, trading at a 66% premium to its fair value estimate of $4.00 per share.
• The fourth-best-performing stock was no-moat Guardant, which gained 25.37%. The 2-star stock has gained 14.46% over the last three months and is up 218.17% over the past 12 months. Guardant finished the week at $118.95, trading at a 31% premium to its fair value estimate of $90.00 per share.
• Dell stock climbed 21.98% in the latest week. This no-moat company has seen an increase of 107.27% over the last three months and 127.83% over the past 12 months. The 1-star stock ended the week at $295.19 per share, trading at a 63% premium to its fair value estimate of $155.00.

Top Stock Losers

Intuit INTU, Optimum Communications OPTU, GDS Services GDS, Nio NIO, and Li Auto LI did the worst among US-listed stocks covered by Morningstar analysts.

• Intuit was the worst-performing stock of the week, falling 18.59%. This 4-star, narrow-moat company has fallen 18.99% over the past three months and fell 52.77% over the past 12 months. The stock ended the week at $319.94, trading at a 33% discount to its fair value estimate of $455.00 per share.
• Optimum took the second spot, with a 17.85% price decline this week. The no-moat company, rated 3 stars, has fallen 53.35% over the past three months and fell 68.56% over the past 12 months. Closing at $0.66, the stock trades at a 29% discount to its fair value estimate of $1.00 per share.
• GDS came in third, experiencing a 17.47% drop this week. This 3-star, no-moat company has fallen 22.01% over the past three months, but is up 18.58% over the past 12 months. The stock finished the week at $35.02, trading at a 7% premium to its fair value estimate of $33.00 per share.
• Next up is Nio, which fell 14.75% this week. The no-moat company with a 3-star rating has risen 10.45% over the past three months and 42.13% over the past 12 months. At $5.20, the stock trades at an 8% discount to its fair value estimate of $6.10 per share.
• Li rounds out the list with a 14.1% decline this week. This 4-star, no-moat company has fallen 11.38% over the past three months and fell 44.37% over the past 12 months. The stock closed the week at $15.9, trading at a 35% discount to its fair value estimate of $25.00 per share.

Highlights of This Week’s Market and Investing Events

• Tuesday, May 26: May Consumer Confidence Survey, earnings from Zscaler ZS
• Wednesday, May 27: Earnings from Salesforce CRM and Snowflake SNOW
• Thursday, May 28: April Personal Income and Outlays report (including the Personal Consumption Expenditure Price Index), May New Home Sales, Initial Unemployment Insurance Claims report for the week ended May 23, earnings from Costco COST
• Friday, May 29: May Chicago PMI