Weekly Market Update: Stocks Gain 1.74% as Communication Services Rise and Utilities Fall

Stock Market Update for the Trading Week Ended July 2

• The Morningstar US Market Index rose 1.74%.
• The best-performing sectors were communication services, up 3.60%, and financial services, up 3.39%.
• The worst-performing sectors were utilities, down 1.18%, and energy, down 1.06%.
• Large-cap stocks gained 1.93%, mid-cap stocks rose 1.04%, and small-cap stocks rose 0.01%.
• Growth stocks gained 0.48%, blend stocks gained 1.38%, and value stocks rose 1.29%.
• The S&P 500 gained 1.76%, and the Nasdaq rose 2.12%.
• Of the 880 US-listed companies covered by Morningstar, 571, or 65%, were up, two were unchanged, and 306, or 35%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 4.49% from 4.38%.
• Yields on 2-year US Treasury notes rose to 4.14% from 4.07%.
• West Texas Intermediate crude prices fell 2.48% to $68.50 per barrel.
• Comex Gold prices rose 1.20% to $4,113.20.

Top Stock Gainers

Tenable TENB, Rapid7 RPD, Clarivate CLVT, Qualys QLYS, and Rivian Automotive RIVN were the top performers among US-listed stocks covered by Morningstar analysts.

• Tenable topped the list, rising 27.81%, and it’s up 122.29% over the past three months. This no-moat company with a 2-star rating has increased 12.86% over the past 12 months. The stock closed the week at $38.60, trading at a 65% premium to its fair value estimate of $23.00 per share.
• Rapid7 was the second-best performer, with a weekly return of 22.79%. The 3-star stock has gained 64.89% over the last three months. Shares in this no-moat company are down 62.69% over the past 12 months. Rapid7 stock wrapped up the week at $9.29, trading at a 10% discount to its fair value estimate of $10.00 per share.
• Clarivate ranked third for the week, rising 21.6%. The 5-star, no-moat stock has fallen 10.84% over the last three months and is down 50.78% over the past 12. Clarivate stock closed at $2.59, trading at a 60% discount to its fair value estimate of $5.50 per share.
• The fourth-best-performing stock was narrow-moat Qualys, which gained 20.16%. The 3-star stock has gained 66.39% over the last three months but is down 0.71% over the past 12. Qualys finished the week at $148.12, trading near its fair value estimate of $139.00 per share.
• Rivian stock climbed 18.98% in the latest week. This no-moat company has seen an increase of 14.99% over the last three months and a rise of 27.54% over the past 12. The 3-star stock ended the week at $18.62 per share, trading at a 14% discount to its fair value estimate of $20.00.

Top Stock Losers

Lumen Technologies LUMN, IREN IREN, Wipro WIT, Sandisk SNDK, and Teradyne TER did the worst among US-listed stocks covered by Morningstar analysts.

• Lumen was the worst-performing stock of the week, falling 20.54%. This 3-star, no-moat company has risen 1.13% over the past three months and rose 58.54% over the past 12 months. The stock ended the week at $6.42, trading near its fair value estimate of $7.50 per share.
• IREN took the second spot, with a 17.65% decline this week. The no-moat company, rated 3 stars, has risen 27.08% over the past three months and is up 184.44% over the past 12. Closing at $38.84, the stock trades at a 6% premium to its fair value estimate of $41.00 per share.
• Wipro came in third, experiencing a 16.74% drop this week. This 3-star, no-moat company has fallen 11.37% over the past three months and fell 34.88% over the past 12 months. The stock finished the week at $1.89, trading near its fair value estimate of $1.80 per share.
• Next up is Sandisk, which saw its stock fall by 16.54% this week. The no-moat company with a 1-star rating has risen 193.36% over the past three months and is up 4,420.06% over the past 12. At $1,745, the stock trades at a 103% premium to its fair value estimate of $1,000 per share.
• Teradyne rounds out the list with a 15.28% decline this week. This 1-star, wide-moat company has risen 36.92% over the past three months and rose 365.45% over the past 12 months. The stock closed the week at $369.09, trading at a 55% premium to its fair value estimate of $275 per share.

Highlights of This Week’s Market and Investing Events

• Monday, July 6: June ISM Services PMI
• Wednesday, July 8: Federal Open Market Committee meeting minutes, May Consumer Credit Report
• Thursday, July 9: Initial Unemployment Insurance Claims, June Existing Home Sales