Weekly Market Update: Stocks Fall as Tech and Consumer Cyclicals Drop

Stock Market Update for the Trading Week Ended June 5

• The Morningstar US Market Index fell 2.48%.
• The best-performing sectors were energy, up 2.26%, and healthcare, up 1.84%.
• The worst-performing sectors were consumer cyclical, down 5.79%, and technology, down 5.03%.
• Large-cap stocks fell 3.2%, mid-cap stocks fell 0.37%, and small-cap stocks fell 1.39%.
• Growth stocks fell 3.63%, blend stocks fell 2.35%, and value stocks rose 0.68%.
• The S&P 500 fell 2.59%, and the Nasdaq fell 4.68%.
• Of the 874 US-listed companies covered by Morningstar, 424, or 49%, were up, two were unchanged, and 448, or 51%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 4.55% from 4.45%.
• Yields on 2-year US Treasury notes rose to 4.17% from 3.98%.
• West Texas Intermediate crude prices rose 2.97% to $90.37 per barrel.
• Comex Gold prices fell 4.92% to $4,319.10.

Top Stock Gainers

Marvell Technology MRVL, Twilio TWLO, Park Hotels & Resorts PK, Humana HUM, and Hewlett Packard Enterprise HPE were the top performers among US-listed stocks covered by Morningstar analysts.

• Marvell topped the list, rising 28.5%, and it’s up 305.29% over the past three months. This narrow-moat company with a 2-star rating has increased 377.63% over the past 12 months. The stock closed the week at $263.47, trading at a 35% premium to its fair value estimate of $235.00 per share.
• Twilio was the second-best performer, with a weekly return of 18.54%. The 2-star stock has gained 92.41% over the last three months. Shares in this no-moat company are up 97.41% over the past 12 months. Twilio stock wrapped up the week at $225.99, trading at a 58% premium to its fair value estimate of $150.00 per share.
• Park Hotels & Resorts ranked third for the week, rising 15.73%. The 4-star, no-moat stock has gained 24.91% over the last three months and 49.35% over the past 12. Park Hotels & Resorts stock closed at $14.05, trading at a 28% discount to its fair value estimate of $19.50 per share.
• The fourth-best-performing stock was narrow-moat Humana, which gained 14.58%. The 3-star stock has gained 91.52% over the last three months and is up 53.07% over the past 12. Humana finished the week at $350.08, trading at a 5% premium to its fair value estimate of $333.00 per share.
• Hewlett Packard climbed 14.31% in the latest week. This no-moat company has seen a 149.80% increase over the last three months and a 204.01% rise over the past 12. The 3-star stock ended the week at $49.20 per share, trading at a 16% discount to its fair value estimate of $64.00.

Top Stock Losers

PayPay PAYP, Coinbase Global COIN, Lumen Technologies LUMN, Enphase Energy ENPH, and PVH PVH did the worst among US-listed stocks covered by Morningstar analysts.

• PayPay was the worst-performing stock of the week, falling 23.1%. The stock ended the week at $15.06, trading at a 39% discount to its fair value estimate of $26.00 per share.
• Coinbase took the second spot, with a 19.33% decline this week. The no-moat company, rated 3 stars, has fallen 21.44% over the past three months and is down 35.89% over the past 12. Closing at $152.49, the stock trades near its fair value estimate of $160.00 per share.
• Lumen came in third, experiencing a 19.28% drop this week. This 2-star, no-moat company has risen 42.24% over the past three months and 153.20% over the past 12. The stock finished the week at $8.91, trading at a 32% premium to its fair value estimate of $7.50 per share.
• Next up is Enphase, which fell 18.05% this week. The no-moat company with a 1-star rating has risen 60.31% over the past three months and 58.46% over the past 12. At $56.07, the stock trades at an 80% premium to its fair value estimate of $38.00 per share.
• PVH rounds out the list with a 16.58% decline this week. This 4-star, no-moat company has risen 18.32% over the past three months but is down 3.09% over the past 12. The stock closed the week at $77.80, trading at a 42% discount to its fair value estimate of $135.00 per share.

Highlights of This Week’s Market and Investing Events

• Tuesday, June 9: May Existing Home Sales
• Wednesday, June 10: May Consumer Price Index report, earnings from Oracle ORCL
• Thursday, June 11: Initial Unemployment Insurance Claims report for the week ended Jan. 6, May Producer Price Index report, earnings from Adobe ADBE
• Friday, June 12: June Preliminary University of Michigan Index of Consumer Sentiment