Weekly Market Update: Stocks Little Changed; Tech Sector Gains While Healthcare Falls

Stock Market Update for the Trading Week Ended Oct. 2

• The Morningstar US Total Market Index fell 0.26%.
• The best-performing sectors were technology, up 1.44%, and energy, up 1.21%.
• The worst-performing sectors were healthcare, down 2.57%, and financial services, down 2.45%.
• Large-cap stocks fell 0.29%, mid-cap stocks fell 0.18%, and small-cap stocks fell 0.04%.
• Growth stocks gained 0.38%, blend stocks fell 0.26%, and value stocks fell 1.09%.
• The S&P 500 fell 0.27%, and the Nasdaq rose 0.45%.
• Of the 872 US-listed companies covered by Morningstar, 303, or 35%, were up, three were unchanged, and 565, or 65%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 5.28% from 5.17%.
• Yields on 2-year US Treasury notes rose to 4.83% from 4.81%.
• West Texas Intermediate crude prices fell 1.13% to $91.40 per barrel.
• Comex Gold prices fell 3.34% to $4,143.80.

Top Stock Gainers

Carnival CCL, Synopsys SNPS, Mattel MAT, Royal Caribbean Cruises RCL, and BlackBerry BB were the top performers among US-listed stocks covered by Morningstar analysts.

• Carnival topped the list, rising 15.79%, but it’s down 11.57% over the past three months. This narrow-moat company with a 4-star rating has decreased 10.01% over the past 12 months. The stock closed the week at $25.76, trading at a 28% discount to its fair value estimate of $35.00 per share.
• Synopsys was the second-best performer, with a weekly return of 15.07%. The 3-star stock has gained 7.92% over the last three months. Shares in this wide-moat company are up 0.36% over the past 12 months. Synopsys stock wrapped up the week at $489.90, trading at a 6% discount to its fair value estimate of $520.00 per share.
• Mattel ranked third for the week, with its stock rising 14.9%. The 4-star, narrow-moat stock has gained 9.46% over the last three months but fell 12.96% over the past 12 months. Mattel stock closed at $15.27, trading at a 35% discount to its fair value estimate of $23.00 per share.
• The fourth-best-performing stock was narrow-moat Royal Caribbean, which gained 14.41%. The 3-star stock has fallen 11.36% over the last three months and is down 12.83% over the past 12 months. Royal Caribbean finished the week at $277.74, trading near its fair value estimate of $262.00 per share.
• BlackBerry stock climbed 13.09% in the latest week. This no-moat company has decreased 28.34% over the last three months but is up 91.65% over the past 12 months. The 2-star stock ended the week at $9.30 per share, trading at a 39% premium to its fair value estimate of $6.60.

Top Stock Losers

Fair Isaac FICO, VNET Group VNET, Clarivate CLVT, GDS Services GDS, and DraftKings DKNG did the worst among US-listed stocks covered by Morningstar analysts.

• Fair Isaac was the worst-performing stock of the week, falling 23.46%. This 5-star, wide-moat company has fallen 45.16% over the past three months and is down 56.25% over the past 12 months. The stock ended the week at $661.25, trading at a 42% discount to its fair value estimate of $1,140.00 per share.
• VNET took the second spot, with a 22.89% price decline this week. The no-moat company, rated 4 stars, has fallen 37.00% over the past three months and is down 48.42% over the past 12 months. Closing at $5.12, the stock trades at a 26% discount to its fair value estimate of $7.50 per share.
• Clarivate came in third, experiencing a 16.95% drop this week. This 5-star, no-moat company has fallen 27.93% over the past three months and 57.67% over the past 12 months. The stock finished the week at $1.48, trading at a 71% discount to its fair value estimate of $5.50 per share.
• Next up is GDS, which fell 15.77% this week. The no-moat company with a 4-star rating has fallen 5.73% over the past three months and is down 25.93% over the past 12 months. At $27.61, the stock trades at a 26% discount to its fair value estimate of $40.00 per share.
• DraftKings rounds out the list with a 15.68% decline this week. This 5-star, narrow-moat company has fallen 24.91% over the past three months and 44.97% over the past 12 months. The stock closed the week at $18.59, trading at a 50% discount to its fair value estimate of $39.00 per share.

Highlights of This Week’s Market and Investing Events

• Monday, Oct. 5: September Purchasing Managers’ Index Composite, September ISM Services PMI
• Wednesday, Oct. 7: Minutes from the September Federal Open Market Committee Meeting, August Consumer Credit
• Thursday, Oct. 8: Initial Unemployment Insurance Claims, Tilray Brands TLRY Earnings
• Friday, Oct. 9: October Preliminary University of Michigan Index of Consumer Sentiment