Stocks finished higher on the week as bond yields stabilized around 24-year highs and oil prices rose modestly. Some stocks, however, might have moved too far, too fast. The S & P 500 posted a weekly gain of 1.2% , while the Dow Jones Industrial Average advanced 0.9%, and the Nasdaq Composite added 0.6%. The broad market's rise lifted some components of the S & P 500 – notably a few energy stocks – into overbought territory, based on the relative strength index (RSI), a momentum indicator that tracks the velocity and size of price changes. Stocks are deemed overbought when their RSI exceeds 70. Hurricane Isaias disrupted U.S. oil production in the Gulf of Mexico, while Iran ramped up tanker attacks in the Strait of Hormuz. Both developments lifted oil prices on the week, with West Texas Intermediate crude futures gaining 0.81% and international Brent crude futures advancing 2.42%. Energy stocks rose alongside oil prices. Petroleum refinery plays Valero Energy and Phillips 66 saw shares rise 6.8% and 8.8%, respectively. Their RSI readings also came in relatively high, with Valero coming in at 79 while Phillips 66 landing at 76. Marathon Petroleum also surged 35% over the week, resulting in an RSI reading of 82. On Thursday, Piper Sandler raised its third-quarter earnings estimate to $25.65 from $24.45, citing higher refining captures. The firm maintained its overweight rating on shares. Outside of the energy sector, shares of industrial software maker PTC surged 35% on the week, leading to an RSI of 79. Earlier this week, Schneider Electric agreed to buy PTC in an all-cash deal at $205 per share, valuing the software maker's equity at about $22.6 billion. Other overbought names include seed and genetics company Vylor and data storage stock Everpure .
