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Market Update

Markets Brief: Stocks Up for the First Time in Three Weeks; Inflation Report Ahead

Earnings from Zscaler and Coupa boost shares. Falling oil and gas prices hit energy firms.

Stocks up for the first time in three weeks; inflation report ahead.
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Stocks finished higher for the first time in three weeks, with the Morningstar US Market Index gaining 3.86%. 

All sectors closed higher for the week, with consumer cyclical and basic materials leading the advance. Energy stocks lagged after a volatile week due to declining oil and gas prices.

The biggest gainers included software companies whose results beat earnings. Shares of companies in the solar energy space bounced back from their losses for the week ending Sept. 2. Chinese ADR stocks led in losses among the U.S.-listed companies covered by Morningstar analysts.

Looking ahead, the latest Consumer Price Index report will be released Sept. 13. Inflation rose 8.5% for the 12-month period ending in July, down from 9.1% in June. Economists expect August’s numbers to continue that downward trend, with mean estimates of inflation declining to 8.1% over the last 12 months, according to FactSet. 

August may also bring the first decline on a monthly basis for inflation since November 2020, as economists estimate the CPI fell 0.1% in August from July.

Events scheduled for the coming week include:

  • Monday: Oracle (ORCL) reports earnings.
  • Tuesday: Consumer Price Index report for August to be released.
  • Wednesday: Producer Price Index data for August. 
  • Thursday: U.S. Retail Sales for August, Adobe (ADBE) reports earnings.

For the trading week ended Sept. 9:

  • The Morningstar US Market Index rose 3.86%.
  • All sectors rose with consumer cyclical stocks, up 5.80% and basic materials, which gained 5.26%, as the best performers.
  • Yields on the U.S. 10-year Treasury rose to 3.32% from 3.20%.
  • West Texas Intermediate crude oil prices fell 0.09% to $86.79.
  • Of the 861 U.S.-listed companies covered by Morningstar, 758, or 88%, were up, and 103, or 12%, declined.

What Stocks Are Up?

The best-performing stocks were Zscaler (ZS), Regeneron Pharmaceuticals (REGN), Lyft (LYFT), Coinbase Global (COIN), and Coupa Software (COUP).

A table of the best-performing stocks from Morningstar's U.S. coverage list for the week.
Regeneron Pharmaceuticals soared following the latest results from its clinical trials of Eylea, a drug used to treat eye diseases. 

Cybersecurity firm Zscaler gained after posting earnings results that topped both revenue and earnings per-share estimates. Coupa Software, a business spend management solutions provider, rose following results that Morningstar equity analyst Julie Bhusal Sharma described as ``a well-rounded earnings beat.’’

Solar companies and other firms set to benefit from the Inflation Reduction Act bounced back from their losses in late August, with Sunrun (RUN), SunPower (SPWR), and ChargePoint (CHPT) up.

A line chart highlighting some of the largest stock moves during the week.

What Stocks Are Down?

The worst-performing stocks were Bilibili (BILI), Sonic Automotive (SAH), VNET Group (VNET), Equinor (EQNR), and Tencent Holdings (TCEHY).

A table showing the worst-performing stocks in Morningstar's US-coverage list of the week.

Chinese ADR stocks fell with video sharing site Bilibili and data center operator VNET Group among the biggest decliners. Shares of Tencent Holdings closed the week down.

Lower oil and gas prices contributed to a decline in energy stocks. WTI crude oil had a volatile week, ending at $86.79 after falling to a closing-low of $81.94 on Wednesday, and natural gas prices fell more than 13%. Equinor, Occidental Petroleum (OXY), and Patterson-UTI Energy (PTEN) were among the worst performers in the group.

A chart highlighting some of the largest stock declines for the week.

Jakir Hossain does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.