Weekly US stockmarket report: Sept 17th-24th

The much-anticipated quarter point rate hike in the federal funds rate did little to unnerve the market on Tuesday; the Morningstar US Market Index actually finished the day up 0.68%.

Morningstar 30.09.2004
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In spite of Tuesday's modest gains, the US Market Index finished the week in the red, down 1.48% for the week. Investors grew wary that the rising oil prices might impede near term economic growth.

Value stocks [shares], which have beaten their growth and core peers by a wide margin over the past 12 months, did an about face last week. The Morningstar Large Value Index lost 2%. Fannie Mae, the federally chartered financier for home mortgages, held back the index when its financial stability came under scrutiny. The stock lost more than 15% for the week after the Office of Federal Housing Enterprise Oversight released a report on Wednesday raising questions about its dubious business practices ranging from the company's corporate culture to its accounting practices.


The Morningstar Mid Growth Index was the best among the bunch, losing a mere 0.03%, as all nine-style indexes ended the week in the negative territory. Significantly influencing the index loss was Red Hat (RHAT), which was down more than 17% for the week. Shares of Red Hat plummeted on Tuesday after the stock failed to meet analyst revenue expectations. Its revenue increase of 60% for the quarter to $46.3 million fell short of the 65% growth expected by the analysts.

For a more in-depth look into market performance please click on the Morningstar Weekly Market Report via the link on the right.

This article first appeared on http://indexes.morningstar.com.
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