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.

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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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