Weekly Market Update: Stocks Gain 2.17% as Technology Rises and Energy Falls

Stock Market Update for the Trading Week Ended May 8

• The Morningstar US Market Index rose 2.17%.
• The best-performing sectors were technology, up 6.7%, and utilities, down 3.71%.
• The worst-performing sectors were energy, down 5.55%, and utilities, down 3.71%.
• Large-cap stocks gained 2.73%, mid-cap stocks rose 0.55%, and small-cap stocks rose 1.31%.
• Growth stocks gained 3.42%, blend stocks gained 1.94%, and value stocks fell 0.8%.
• The S&P 500 gained 2.33% and the Nasdaq rose 4.51%.
• Of the 876 US-listed companies covered by Morningstar, 409, or 47%, were up, two were unchanged, and 465, or 53%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes fell to 4.38% from 4.39%.
• Yields on 2-year US Treasury notes rose to 3.90% from 3.88%.
• West Texas Intermediate crude prices fell 7.41% to $94.90 per barrel.
• Comex Gold prices rose 2.54% to $4,724.80.

Top Stock Gainers

Datadog DDOG, Akamai Technologies AKAM, Taboola TBLA, Micron Technology MU, and IREN IREN were the top performers among US-listed stocks covered by Morningstar analysts.

• Datadog topped the list, rising 42.43%, and it’s up 68.98% over the past three months. This wide-moat company with a 3-star rating has increased 78.01% over the past 12 months. The stock closed the week at $200.16, trading at a 14% premium to its fair value estimate of $166.00 per share.
• Akamai was the second-best performer, with a weekly return of 42.21%. The 3-star stock has gained 22.73% over the last three months. Shares in this narrow-moat company are up 40.83% over the past 12 months. Akamai stock wrapped up the week at $147.71, trading near its fair value estimate of $122.00 per share.
• Taboola ranked third for the week, rising 38.39%. The 2-star, no-moat stock has gained 44.72% over the last three months and 70.26% over the past 12. Taboola stock closed at $5.25, trading at a 39% premium to its fair value estimate of $3.75 per share.
• The fourth-best-performing stock was no-moat Micron, which gained 37.73%. The 2-star stock has gained 63.87% over the last three months and 683.25% over the past 12. Micron finished the week at $746.79, trading at a 27% premium to its fair value estimate of $455.00 per share.
• IREN stock climbed 34.08% in the latest week. This no-moat company has seen a 35.91% increase over the last three months and a 765.30% rise over the past 12. The 1-star stock ended the week at $61.22 per share, trading at an 118% premium to its fair value estimate of $26.00.

Top Stock Losers

Optimum Communications OPTU, Cogent Communications CCOI, Tandem Diabetes Care TNDM, Wingstop WING, and Freshpet FRPT did the worst among US-listed stocks covered by Morningstar analysts.

• Optimum was the worst-performing stock of the week, falling 29.38%. This 3-star, no-moat company has fallen 28.05% over the past three months and 55.47% over the past 12. The stock ended the week at $1.13, trading at a 34% discount to its fair value estimate of $1.80 per share.
• Cogent took the second spot, with a 28.05% price decline this week. The narrow-moat company, rated 4 stars, has fallen 32.73% over the past three months and is down 65.45% over the past 12 months. Closing at $16.65, the stock trades at a 35% discount to its fair value estimate of $25.00 per share.
• Tandem Diabetes Care came in third, experiencing a 20.28% drop this week. This 3-star, no-moat company has fallen 3.65% over the past three months and is down 17.03% over the past 12. The stock finished the week at $15.47, trading at an 8% discount to its fair value estimate of $20.00 per share.
• Next up is Wingstop, which fell 19.3% this week. The narrow-moat company with a 3-star rating has dropped 48.80% over the past three months and 49.64% over the past 12. At $129.71, the stock trades near its fair value estimate of $140.00 per share.
• Freshpet rounds out the list with a 18.49% decline this week. This 5-star, no-moat company has fallen 20.07% over the past three months and 31.12% over the past 12. The stock closed the week at $53.08, trading at a 44% discount to its fair value estimate of $100.00 per share.

Highlights of This Week’s Market and Investing Events

• Monday, May 11: April Existing Home Sales (seasonally adjusted annual rate)
• Tuesday, May 12: April Consumer Price Index report
• Wednesday, May 13: April Producer Price Index report, earnings from Alibaba Group Holding BABA, Cisco Systems CSCO
• Thursday, May 14: Initial Unemployment Insurance Claims report for the week ended May 9, April Retail Sales (month to month), March Business Inventories (month to month)
• Friday, May 15: April Capacity Utilization, April Industrial Production (month to month)