Rate Hike Fears Weigh Down Small Stocks
(MONEY Magazine) – Concern about rising interest rates continued to push all stock benchmarks down for the second straight month. The Russell 2000 index of small-company stocks was hit the hardest, and the 5.1% drop is no surprise: Small companies rely on low rates and easy credit to fuel growth. The S&P's telecom sector was up 3.4%, thanks in part to an 8% spike in carrier AT&T's stock. The widely held and high-yielding company recently announced plans to acquire BellSouth.
S&P 500 SECTOR AVERAGES
S&P 500 RATIOS
P/E Current 17.2 One year range DIVIDED Current 1.95 One year range
HIGHEST-YIELDING DOW STOCKS
MOST WIDELY HELD STOCKS
NOTES AND SOURCES: Unless otherwise noted, data as of June 22 from Lipper, New York; 877-955-4773. Index levels from Bloomberg. Bond index data from Lehman Brothers. Stock data from Thomson/Baseline. Monthly S&P 500 ratios from Standard & Poor's. Ratios are based on previous four quarters of earnings. Top-Performing Stocks limited to companies with market capitalization of at least $500 million. Most Widely Held Stocks ranked by largest accounts at Merrill Lynch.  Annualized.  Price change only.