Biotech Values

[DewDiligence]

S&P 500 Gains 13% in 2010

[The S&P 500’s cumulative gain since the Mar 2009 low is a whopping 88%, but the healthcare sector has been a laggard.]

http://online.wsj.com/article/SB10001424052748704543604576053433868839842.html

›DECEMBER 31, 2010, 4:19 P.M. ET
By DONNA KARDOS YESALAVICH

NEW YORK—U.S. stocks ended 2010 with a small gain after failing to find the strength to set a new closing high for the year.

The Dow Jones Industrial Average edged up a preliminary 7.80 points, or 0.1%, to 11577.51, leaving it shy of 11585.38, its highest close since August 2008. Even so, it was the blue-chip's second straight annual increase, with almost half of the 2010 climb having come this month.

The Nasdaq Composite shed 10.11 points to 2652.87 but ended the year up 17%. The Standard & Poor's 500 index shed 1.06 points to 1256.82 but ended the year up 13%.

While 2010 was ultimately positive for stocks, it was anything but smooth as investors were spooked by events such as the May 6 "flash crash" and ongoing worries over the financial health of several euro-zone governments that resulted in rescues for Greece and Ireland. A new $600 billion stimulus plan from the Federal Reserve and improving economic data helped the market recover from a summer slump, with stocks ultimately reaching highs not seen since before the fall of Lehman Brothers in 2008.

"The year, it was kind of like a long road trip," said Lawrence Creatura, manager of the Federated Clover Small Value Fund. "It wasn't always comfortable, but the destination was worth it."

The consumer-discretionary sector was the best-performing category in the S&P 500, and the healthcare and utilities sectors lagged with gains of around 1% each. [The energy and “materials” sectors also had good years.] Small-capitalization stocks handily outperformed large-cap stocks.‹