Sheri Caplan is on vacation, so I'll be your substitute this week for our Markets Recap. As always, there WILL be a quiz, so no snoozing through class!
Stocks rallied sharply on Wednesday, after Fed Chairman Ben Bernanke hinted that rate hikes were coming to a close. The S&P 500 came back down to earth the next day, when minutes from the Fed's June meeting only revealed more uncertainty. Concerns about Middle East violence and higher oil prices probably didn't sit well with investors, either. The S&P 500 finished the week up 0.33%.
Second-quarter earnings were in full swing last week. Intel
Meanwhile, PC titan Dell
OK, put those notes away and get your No. 2 pencils out. It's quiz time!
Capital Markets Summary
Weekly Change (%)
YTD Change (%)
1. Which of these sectors performed the best over the last week?
(c) information technology
(d) health care
2. Which of the following industries has performed the best year-to-date?
(b) oil and gas
(c) Internet software
3. The National Bureau of Statistics recently announced China's economy grew at what rate over the first half of the year?
4. True or False: Strong results in India, the Philippines, and Japan helped Coca-Cola beat sales and earnings estimates in Q2.
5. True or False: Google and Yahoo both ended the week down after reporting results.
6. Our Foolish bank analyst Stephen Simpson recently stated that which of the following big banks was undervalued?
(a) Bank of America
(b) JPMorgan Chase
(e) all of the above
7. According to the conference call, Apple's pipeline of new products includes:
(a) an iPod that is smaller than a penny
(b) a feature-length film about the differences between a Mac and a PC
(c) if only we knew!
8. True or false: Yum! Brands dropped 6% on Thursday, despite beating earning estimates by 10%.
9. True or False: Marvel Entertainment
10. The Knot
(a) a secondary offering
(b) a merger
(c) weak earnings
1. (d) The health-care sector notched a 3% gain last week, according to Capital IQ. Energy, industrials, and IT all dropped lower.
2. (a) Telecom performed the best year-to-date, with a 14% gain. Internet software came in last place, with a 31% drop.
3. (c) China's economy grew 10.9% through the first half of the year. China just keeps on getting hotter.
4. False. India, the Phillipines, and Japan were actually weak spots in an otherwise strong international market. See "Coca-Cola Shows Some Fizz" for Nate Parmelee's Foolish take.
6. (e) Stephen Simpson sees value in large-cap banks right now. Bank of America, JPMorgan Chase, Wachovia and Citigroup are among the most promising. See "Can Bank of America Become a Cash Machine?"
7. (c) Apple's reticence on new products was one of Anders Bylund's peeves regarding an otherwise strong quarter. Come on, Apple! Throw us a bone here!
8. True. Weak domestic same-store sales weighed on the stock price, despite beating earnings estimates.
9. False. Marvel does have plans for a sequel to Hulk, but the real working title is The Incredible Hulk.
10. (a) The Knot announced a secondary offering that appears to be "excessive," according to one Fool. More than half of the shares will come from bailing insiders. In the words of Rick Munarriz: "Not cool."
- 8-10 correct: Foolishly impressive.
- 6-7 correct: Almost Foolish.
- 1-5 correct: OK, but just barely.
- 0 correct: Really? Keep reading the Fool and watch your scores improve!
Dell, Intel, and Coca-Cola are Motley Fool Inside Value picks. Bank of America, JPMorgan Chase, and Johnson & Johnson were selected by Motley Fool Income Investor . The Knot is a Rule Breakers recommendation. Marvel and Dell are Stock Advisor picks.