This week the market, as measured by the S&P 500 Index, had a positive return of 0.87%, trading at an annualized 5.1% volatility. The VIX index dropped 8.75% to 13.45 for the week.
The weekly sector performances, as measured by the S&P 500 sector indices were:
|
From August 10, 2012 to August 17, 2012 |
|
Sector |
Index |
Return |
Return over S&P |
Volatility |
Correlation to S&P |
|
Technology |
TEC |
2.34% |
1.47% |
10.9% |
89.1% |
|
Discretionary |
CDI |
1.80% |
0.93% |
5.1% |
96.8% |
|
Financials |
FIN |
1.22% |
0.35% |
4.6% |
94.1% |
|
Industrials |
IND |
1.15% |
0.28% |
7.5% |
95.5% |
|
Staples |
CST |
0.69% |
-0.18% |
2.8% |
19.1% |
|
Materials |
MAT |
0.28% |
-0.60% |
13.4% |
96.5% |
|
Energy |
ENE |
-0.14% |
-1.02% |
9.1% |
94.5% |
|
Healthcare |
HEA |
-0.64% |
-1.52% |
6.1% |
-27.5% |
|
Telecom |
TEL |
-0.67% |
-1.54% |
1.4% |
22.6% |
|
Utilities |
UTL |
-1.48% |
-2.36% |
3.4% |
-10.2% |
|
S&P 500 |
S&P |
0.87% |
0.00% |
5.1% |
100.0% |
This week S&P 500 return came slightly below one percent, lower than last week's 1.07%, but the volatility increased to 5.1%, still well below year to date volatility of 13.2%.
Solid weekly performers were Technology and Discretionary sectors with a significant at about or over one percent outperformance over the index. The Industrials and Financials sectors were not as strong, but still managed to provide a positive excess return.
Strong earnings from Cisco continued to keep the Technology sector as an outperformer and an increase in consumer confidence had Discretionary sector provide solid outperformance as well. Financial sector was buoyed by new talks or rumors of additional rounds of quantitative easing and accommodation on both sides of the ocean, as well as from China.
The major losers were the defensive sectors Utilities, Telecom and Healthcare sectors. The thought of recovery picking up made investors rotate out of these sectors and into growth sectors. The Energy sector has given back some gains from previous weeks, as investors started to take profits, despite continued tension in the Middle East.
Comparing these numbers to last week, the recent rally is continuing to show investors' belief that either we on a solid ground for improving recovery or that new quantitative easing will definitely happen, all depending on your point of view of course.
It is still too early to tell which one it is, most likely it is a combination of both.
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Month to Date and Year to Date sector returns are provided for comparison.
|
From June 29, 2012 to August 17, 2012 |
|
MTD Sector Performance |
Index |
Return |
Return over S&P |
Volatility |
Correlation to S&P |
|
Energy |
ENE |
7.56% |
3.45% |
17.7% |
85.7% |
|
Technology |
TEC |
6.75% |
2.64% |
15.9% |
88.0% |
|
Telecom |
TEL |
4.56% |
0.45% |
14.9% |
61.7% |
|
Discretionary |
CDI |
3.90% |
-0.21% |
13.6% |
89.1% |
|
Industrials |
IND |
3.83% |
-0.28% |
15.4% |
92.4% |
|
Staples |
CST |
3.16% |
-0.95% |
9.6% |
82.2% |
|
Financials |
FIN |
3.06% |
-1.05% |
15.7% |
88.7% |
|
Materials |
MAT |
2.34% |
-1.77% |
15.5% |
87.2% |
|
Healthcare |
HEA |
0.97% |
-3.14% |
12.5% |
83.5% |
|
Utilities |
UTL |
-0.18% |
-4.30% |
9.9% |
69.1% |
|
S&P 500 |
S&P |
4.11% |
0.00% |
12.4% |
100.0% |
|
From December 30, 2011 to August 17, 2012 |
|
YTD Sector Performance |
Index |
Return |
Return over S&P |
Volatility |
Correlation to S&P |
|
Technology |
TEC |
20.32% |
7.55% |
16.5% |
90.5% |
|
Telecom |
TEL |
18.51% |
5.74% |
12.3% |
58.3% |
|
Discretionary |
CDI |
16.43% |
3.66% |
14.6% |
90.4% |
|
Financials |
FIN |
16.09% |
3.32% |
19.4% |
90.6% |
|
Healthcare |
HEA |
10.73% |
-2.04% |
11.0% |
87.5% |
|
Staples |
CST |
10.35% |
-2.42% |
8.8% |
78.6% |
|
Industrials |
IND |
10.13% |
-2.64% |
16.1% |
93.8% |
|
Materials |
MAT |
7.77% |
-5.00% |
18.0% |
90.2% |
|
Energy |
ENE |
3.94% |
-8.83% |
18.3% |
87.5% |
|
Utilities |
UTL |
2.45% |
-10.32% |
9.2% |
50.5% |
|
S&P 500 |
S&P |
12.77% |
0.00% |
13.2% |
100.0% |
