If a strong move in the last four months of 2010 meant a good year for stocks in general, it was great for small cap stocks. The S&P SmallCap 600 (IJR) finished up 26% in 2010 compared to a 14% gain for the large cap S&P 500.
Retail stocks had a strong holiday season, outpacing the broader market in the 4th quarter and for the full year. The SPDR S&P Retail ETF (XRT) is up 16% in Q4 and 36% year-to-date.
Investors have recently sold off municipal bonds and there could be more selling on the way. On yesterday’s U.S. television news magazine “60 Minutes”, reporter Steve Kroft lead a segment that focused on the growing financial woes of state and local governments.
Chipotle (CMG) and other midcap growth stocks have recently outpaced the broader market adding to their already impressive performance in 2010. Despite today’s 5% decline, Chipotle Mexican Grill is up nearly 160% in 2010, gaining 26 points since late October.
The Dow Transportation Index hit a new high for the year on Friday as transport stocks continue to outperform the broader market in 2010. The Dow Jones Transportation Average Index Fund (IYT) is up 25% on the year compared to plus 10% for the S&P 500.
The dollar has enjoyed a comeback as market concerns over European debt has weakened the Euro. The PowerShares DB US Dollar Bullish Fund (UUP) is up nearly 6% over the past three weeks while the Market Vectors Double Short Euro ETN (DRR) is up 15% over the same period.
SalesForce.com (CRM) set an all time high on Friday after announcing third quarter earnings. The sales force automation company’s stock is up 83% year-to-date compared to a 7% gain for the broader market.
After a steady rise through the summer, bonds have given up ground to stocks as investors react to US plans for quantitative easing. Since August 16, the Barclays Capital 20+ Year Treasury Bond Fund (TLT) has declined 10% with stocks rising 11% over the same time period.
The materials sector has lead stocks higher in the most recent upswing that began in late August. The Materials Select Sector SPDR Fund (XLB), is up 15% since August 26 compared to 11% for the S&P 500 over the same time period.
Second quarter growth in Brazil exceeded all expectations with GDP expanding at 8.8% compared to the same period a year earlier. According to the AP, the Brazilian Finance Ministry had forecast growth of between 0.5 percent and 1 percent for Q2.