Credit Regains Momentum
Just as the credit market was starting to lose momentum, along came the tech sector.
Just as the credit market was starting to lose momentum, along came the tech sector. Late last week, strong earnings from Research in Motion (RIMM), better-than-expected earnings and increased guidance from Oracle (ORCL, rating: AA), and word that Texas Instruments (TXN) is increasing its dividend and share-buyback program offset mixed economic news earlier in the week. The markets had been waiting for some positive news, and this filled the bill. The Morningstar Corporate Bond Index tightened 3 basis points from the prior week to +161.
Economic releases were mixed last week, as the reported headlines masked worrying underlying trends. Prior-month downward revisions made the numbers look better than they actually were. For example, retail sales topped expectations for August, increasing 0.4% month over month. However, the better-than-expected release was a result of a revision for July sales to 0.3% from 0.4%.
David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.