US Stocks Week Ended June 29, 2012

Last week, the S&P 500 Index had positive performance with a 2.08% return. The week started out down 1.58% for Monday. Even though there was some positive economic data released Monday, investors were worried that Operation Twist by the Fed would not spur US growth and that a solution for Europe would not be met at Thursday's and Friday's EU Summit. More positive US economic news pushed the market higher Tuesday and Wednesday. Thursday the market dropped and remained under pressure most of the day as the Supreme Court upheld the Obama administration's healthcare overhaul which includes the individual health insurance requirement. Managed care companies such as WellPoint, Aetna, Coventry Health Care and Cigna have traded lower and have not bounced back since the announcement. Not only was Friday the last trading day for the first half of 2012, but it also was the best performing day of the year with a positive return of 2.50%. The markets reacted to the news that a deal was struck by European leaders in Brussels at the EU Summit. This had investors relieved and feeling euphoric as bond yields in Spain and Italy retreated from 7%. All ten economic sectors had positive performance last week. Energy was the strongest with a 4.81% return for the week. The materials and industrials sectors returned 2.96% and 2.68% respectively. Information technology and consumer discretionary sectors performed the worst of all ten sectors returning 0.86% and 0.95% respectively. Constellation Brands, an alcohol beverage company, turned in the best performance in the S&P 500 Index with a 39.70% return for the week. This increase can be attributed to Friday's announcement that it is acquiring the remaining 50% of Crown Imports LLC from Grupo Modelo SAB de CV. The next best performers were QEP Resources and Lennar with returns of 17.85% and 17.22% respectively. Twelve other stocks in the S&P 500 Index returned greater than 10.00% for the week.
Posted on Monday, July 2, 2012 @ 8:26 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.