Un­der­cur­rents in the S&P 500

The Washington Post Sunday - - MARKETS -

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.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.