Market Wrap: Stocks Fall as Industrials and Utilities Decline

Stock Market Update for the Trading Week Ended Aug. 21

• The Morningstar US Total Market Index fell 1.48%.
• The best-performing sectors were healthcare, up 4.19%, and energy, up 2.39%.
• The worst-performing sectors were industrials, down 4.23%, and utilities, down 3.65%.
• Large-cap stocks fell 1.48%, mid-cap stocks fell 1.82%, and small-cap stocks fell 1.46%.
• Growth stocks fell 2.03%, blend stocks fell 1.48%, and value stocks fell 0.76%.
• The S&P 500 fell 1.43%, and the Nasdaq fell 2.05%.
• Of the 882 US-listed companies covered by Morningstar, 380, or 43%, were up, none were unchanged, and 501, or 57%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 4.74% from 4.68%.
• Yields on 2-year US Treasury notes rose to 4.24% from 4.17%.
• West Texas Intermediate crude prices rose 5.15% to $86.64 per barrel.
• Comex Gold prices rose 5.38% to $4,609.20.

Top Stock Gainers

Moderna MRNA, Coinbase Global COIN, BioNTech BNTX, Argenx ARGX, and Hims & Hers Health HIMS were the top performers among US-listed stocks covered by Morningstar analysts.

• Moderna topped the list, rising 129.17%, and it’s up 177.06% over the past three months. This no-moat company with a 3-star rating has increased 395.8% over the past 12 months. The stock closed the week at $145.13, trading at an 18% discount to its fair value estimate of $163.00 per share.
• Coinbase was the second-best performer, with a weekly return of 25.62%. The 3-star stock has lost 9.9% over the last three months. Shares in this no-moat company are down 43.38% over the past 12 months. Coinbase stock wrapped up the week at $186.49, trading at a 15% premium to its fair value estimate of $150.00 per share.
• BioNTech ranked third for the week, rising 25.26%. The 2-star, no-moat stock has gained 22.72% over the last three months but fell 0.37% over the past 12 months. BioNTech stock closed at $116.57, trading at a 46% premium to its fair value estimate of $76.00 per share.
• The fourth-best-performing stock was no-moat Argenx, which gained 22.1%. The 3-star stock has gained 29.08% over the last three months and is up 57.06% over the past 12 months. Argenx finished the week at $1,039.78, trading at a 15% premium to its fair value estimate of $900.00 per share.
• Hims & Hers Health climbed 20% this week. This no-moat company has increased 38.28% over the last three months but has declined 26.56% over the past 12 months. The 2-star stock ended the week at $33.78 per share, trading at a 39% premium to its fair value estimate of $23.00.

Top Stock Losers

Klarna Group KLAR, iQIYI IQ, Nebius Group NBIS, Cogent Communications Holdings CCOI, and CoreWeave CRWV did the worst among US-listed stocks covered by Morningstar analysts.

• Klarna was the worst-performing stock of the week, falling 31.07%. This 5-star, narrow-moat company has fallen 12.99% over the past three months. The stock ended the week at $14.33, trading at a 63% discount to its fair value estimate of $38.30 per share.
• iQIYI took the second spot, with a 22.14% price decline this week. The no-moat company, rated 1 star, has fallen 6.36% over the past three months and is down 55.22% over the past 12 months. Closing at $1.05, the stock trades at a 106% premium to its fair value estimate of $0.50 per share.
• Nebius came in third, experiencing a 21.13% drop this week. This 2-star, no-moat company has risen 14.75% over the past three months and rose 226.23% over the past 12 months. The stock finished the week at $219.13, trading at a 47% premium to its fair value estimate of $150.00 per share.
• Next up is Cogent, which fell 19.03% this week. The narrow-moat company with a 4-star rating has fallen 43.67% over the past three months and 70.44% over the past 12 months. At $9.17, the stock trades at a 41% discount to its fair value estimate of $17.00 per share.
• CoreWeave rounds out the list with a 16.58% decline this week. This 3-star, no-moat company has fallen 11.37% over the past three months and fell 1.92% over the past 12 months. The stock closed the week at $87.85, trading at a 22% discount to its fair value estimate of $115.00 per share.

Highlights of This Week’s Market and Investing Events

• Tuesday, Aug. 25: August Consumer Confidence Survey, July New Home Sales
• Wednesday, Aug. 26: July Durable Orders, July Personal Income and Outlays report, earnings from Salesforce CRM and Nvidia NVDA
• Thursday, Aug. 27: Initial Unemployment Insurance Claims
• Friday, Aug. 28: August Chicago PMI