Undercurrents in the S&P 500
On the surface, it was another up week for the Standard & Poor’s 500-stock index. Underneath, things were a little more complicated. Consider a version of the S&P 500 that strips out market-value biases — the “equal-weight S&P,” in which Apple matters as much as relative pipsqueaks such as Garmin and Macy’s. Analysts normally like to see the two indexes moving together, a sign the rising market is lifting all boats.
That didn’t happen in the past five days. In fact, the equal-weighted version just posted its biggest weekly drop since May, and its worst week versus the regular S&P 500 all year. The reason: While enough megacap stocks rose to keep the S&P 500 afloat, singlestock blowups were far more common than single-stock rallies. How much more? Thirteen stocks posted declines greater than 10 percent, and just three rose that much.
Last week, the S&P 500 climbed 0.2 percent to 2,476.83, while its equal-weight cousin slipped 0.4 percent. The Dow Jones industrial average added 262.5 points to 22,092.81, closing above 22,000 for the first time.
The treasury will sell $39 billion in threemonth bills and $33 billion in six-month bills Monday. They yielded 1.08 percent and 1.14 percent in when-issued trading. It will also sell four-week bills and $24 billion in three-year notes Tuesday, $23 billion in 10-year notes Wednesday and $15 billion of 30-year bonds Thursday.