Weekly Investor – October 4, 2021
S&P Up for the Week
The S&P 500® Index fell 2.2% last week. For the month, the market fell 4.8%. September was the worst month since March 2020 and snapped a seven-month winning streak. Sell-offs last Tuesday and Thursday were driven by fears of inflation, as logistical challenges across the globe continue. In addition, the Federal Reserve indicated it might begin rolling off quantitative easing by the end of 2021. On the plus side, retail demand continued to rise as August Personal Consumption numbers released on the first day of October beat economist estimates and consumer balance sheets are still very strong.
The Energy sector was strong last week, gaining 5.8% while every other sector fell. Crude oil prices rose on signs that global inventories are falling. The best performing stock in the S&P 500 during the week was Dollar Tree, Inc. which cited inflation as the catalyst for the company to raise prices on some items above $1. The worst performing stock in the S&P 500 was Moderna, Inc. which followed other vaccine producers in a sell-off as Merck & Co., Inc. announced that its new antiviral pill reduced the risk of COVID-induced hospitalizations or death by 50%. Looking ahead to this week, earnings from PepsiCo, Inc., Constellation Brands, Inc., and Conagra Brands, Inc. are expected to give insights into the Food and Beverage industry during the third quarter.
The S&P 500 Index was down 2.2% for the week. Its top-performing sectors were Energy (5.8%) and Financials (-0.3%), while the bottom-performing sectors were Technology (-3.3%) and Health Care (-3.5%). In the fixed-income market, the 10-year Treasury yield was even, ending at 1.5%.
We continue to seek companies that reflect our Change-BasedSM investment approach.
Change Based Investment
Amazon.com, Inc. is a leading online retailer and technology company that focuses on e-commerce, digital streaming, cloud computing and artificial intelligence. It is the world’s largest online marketplace and distributes streaming content through services such as Amazon Prime Video and Audible. It owns a cloud computing subsidiary, Amazon Web Services and a physical retailer, Whole Foods Market.
Amazon dominates two of the most powerful trends impacting the world today, e-commerce and cloud computing. Additionally, Amazon continues to cultivate future growth platforms such as online advertising, healthcare and logistics. The company has quadrupled its capital investments over recent years, deepening its competitive moat and ensuring a best-in-breed growth profile for years to come. For these reasons, we believe Amazon is a good fit for our Change-BasedSM investment approach.
Top 5 Equity Holdings
Large Cap Growth
| Alphabet, Inc.(Google) | 8.3% |
| Apple, Inc. | 6.3% |
| Danaher Corporation | 5.8% |
| Target Corporation | 5.4% |
| Mastercard Incorporated | 4.6% |
Small Cap Core
| Medpace Holdings, Inc. | 4.8% |
| OneMain Holdings, Inc. | 4.5% |
| Fortinet, Inc. | 4.4% |
| Select Medical Holdings | 3.3% |
| ASGN Incorporated | 3.3% |
Dividend Select
| Target Corporation | 6.5% |
| Microsoft Corporation | 6.4% |
| JPMorgan Chase & Co. | 5.8% |
| Eaton Corporation Plc | 4.1% |
| Truist Financial Corp. | 3.8% |
Mid Cap
| Zebra Technologies Corp. | 4.2% |
| Marvell Technology, Inc. | 4.0% |
| CDW Corporation | 4.0% |
| Cintas Corporation | 3.8% |
| Builders FirstSource, Inc. | 3.6% |
This newsletter presents selected recommendations from portfolio managers of Argent Capital Management LLC, a registered investment advisor. Opinions reflect the portfolio manager’s judgment on the date above and are subject to change. A list of stocks recommended by Argent is available upon request. You should not assume that these recommendations are or will be profitable. In the course of it’s business, Argent’s client accounts may be buying and selling these stocks.
