Weekly Market Recap

Week ended June 14

Market-moving news

Market-moving news

Market-moving news
Leveling off

The major stock indexes posted weekly gains of around 0.5% amid mostly quiet trading, cooling off after the previous week’s big rally. The first half of June has seen a swift reversal from the market’s sell-off in May, which ended with the Dow posting its sixth consecutive weekly decline. 

Market-moving news
Tech lift

Technology stocks have been a big source of the broad market’s gains so far in June. The six-day stretch that ended on Tuesday, June 11, marked the best such period in more than seven years for the S&P 500 Index’s information technology sector, as those stocks posted a nearly 9% gain, according to Dow Jones Market Data. 

Market-moving news
Oil pressure

Crude oil prices extended their recent decline as investors assessed the impact of an oil supply glut amid a slowdown in global economic growth. However, the latest weekly decline was modest, owing in part to price catalysts such as attacks on oil tankers in the Gulf of Oman and U.S.-Iran tensions. 

Market-moving news
Industrial slowdown

China’s growth in industrial output was just 5% in May, the slowest pace in more than 17 years for the world’s second-largest economy. The government data was released on Friday as policymakers consider whether to take further steps to stimulate China’s economy amid a trade war with the United States. 

Market-moving news
Gold’s glitter

Gold prices peaked at $1,362 an ounce on Friday, the highest level in 14 months. Gold has climbed in June amid concerns that slowing global economic growth could trigger an interest-rate cut by the U.S. Federal Reserve, potentially raising inflation risks that can often lead investors to bid up prices of gold. 

Market-moving news
Retail therapy

Despite other indicators of softening economic growth, U.S. retail sales continue to post solid monthly gains. The government reported on Friday that sales climbed a seasonally adjusted 0.5% in May compared with April.  

Market-moving news
Flow reversal

In a potential sign of investor anxiety, withdrawals from exchange-traded funds exceeded deposits in May—the first time in more than five years that the global ETF industry has experienced a monthly net outflow. Preliminary global data from the consultancy ETFGI showed an outflow of $4.5 billion last month. 

Market-moving news
Eyes on the Fed

The U.S. Federal Reserve will open a two-day policy meeting on Tuesday amid market expectations that at least one interest-rate cut could come this year, given recent softness in employment growth and inflation data. If the Fed doesn’t announce a rate cut at its June meeting, it will have another opportunity at its July 30–31 session. 

The week ahead: June 17-21

Monday

  • Housing Market Index, National Association of Home Builders

Tuesday

  • U.S. Federal Reserve Board opens two-day policy meeting
  • Housing starts, U.S. Census Bureau

Wednesday

  • U.S. Federal Reserve Board concludes two-day policy meeting, Chairman Jerome Powell holds press conference

 

Thursday

  • The Conference Board Leading Economic Index for the U.S.

Friday

  • Existing home sales, National Association of Realtors 
Important disclosures

Unless otherwise noted, all data is from FactSet.

The data provided is for informational purposes only and is not an endorsement of any security, mutual fund, sector, or index. This does not illustrate the performance of any John Hancock fund. The information contained here is not guaranteed as to accuracy or completeness. All economic and performance information is historical and does not guarantee future results.

The Dow Jones Industrial Average is a price-weighted index comprising 30 widely traded blue chip U.S. common stocks. The NASDAQ Composite Index is a market-value-weighted index of all common stocks listed on the NASDAQ stock exchange. The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States. The MSCI Europe, Australasia, and Far East (EAFE) Index tracks the performance of publicly traded large- and mid-cap stocks of companies in those regions. The Cboe Volatility Index (VIX) shows the market’s expectation of 30-day volatility and is constructed using the implied volatilities of a wide range of S&P 500 Index options. Weekly and year-to-date figures for the VIX show percentage changes, not investment returns. It is not possible to invest directly in an index.

The Treasury yield curve is derived from available U.S. Treasury securities trading in the market and is provided directly by the U.S. Federal Reserve. The spread measures the difference in yield between two government securities. A normal (positive) yield curve occurs when longer-term rates are higher than shorter-term rates. The opposite holds true for an inverted yield curve. Year-to-date changes in U.S. Treasury bond yields are shown in basis points (BPS).  One hundred basis points equals one percent.

Oil prices are represented by West Texas Intermediate (WTI) crude oil.

The G20 countries comprise a mix of the world’s largest advanced and emerging economies, representing about two-thirds of the world’s population, 85% of global gross domestic product, and over 75% of global trade.

 

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Investment returns

Equities

U.S. equity size and style total returns (%) as of 6/14/19
1 week
0.50.50.5 Large
0.50.40.2 Mid
0.50.60.6 Small
Value Core Growth
YTD
13.916.519.3 Large
15.719.023.8 Mid
10.613.616.5 Small
Value Core Growth
Index/market total returns as of 6/14/19 (%)
Close Week YTD
Dow Jones Industrial Average 26,089.6 0.5 13.2
NASDAQ Composite Index 7,796.7 0.7 18.1
S&P 500 Index 2,887.0 0.5 16.3
MSCI EAFE Index 1,870.2 -0.3 11.3
Cboe Volatility Index 15.3 -6.1 -39.8
International/developed (%)
1 week YTD
EAFE -0.3 11.3
Europe -0.6 12.8
France -0.8 13.8
Germany -0.7 10.7
Italy 0.3 13.5
Japan 0.6 6.5
Spain -1.7 7.9
Switzerland -0.2 20.2
U.K. -0.9 10.5
Emerging markets (%)
1 week YTD
EM 0.9 6.2
Brazil -0.7 11.1
China 1.7 6.8
India -0.7 7.1
Indonesia 1.2 3.6
Korea 0.3 -1.7
Mexico 1.8 7.4
Russia 2.5 27.1
Taiwan 0.7 5.2
S&P 500 sectors (%)
1 week YTD
S&P 500 Index 0.5 16.3
Communication services 1.4 16.9
Consumer discretionary 2.5 20.6
Consumer staples 0.8 17.1
Energy -0.5 7.4
Financials 0.5 15.1
Healthcare 0.3 6.0
Industrials -0.4 17.8
Information tech -0.2 23.2
Materials 0.5 15.2
Real estate 0.8 22.4
Utilities 1.2 15.8

Fixed income, currencies, and commodities

U.S. fixed-income style total returns (%) as of 6/14/19
1 week
-0.10.1-0.3 Large
0.00.00.2 Mid Quality
0.20.40.6 Small
Value Core Growth
INTEREST-RATE SENSITIVITY
YTD
1.83.59.5 Large
2.24.112.9 Mid Quality
4.89.013.0 Small
Value Core Growth
INTEREST-RATE SENSITIVITY
U.S. Treasury bond yields as of 6/14/19 (%)
END OF WEEK PRIOR YEAR END YTD CHANGE (BPS)
2 Yr 1.84 2.21 -37
10 Yr 2.09 2.39 -30
30 Yr 2.59 2.82 -23
2-10 spread 0.25 0.18 +7
10-30 spread 0.50 0.43 +7
U.S. bond sector total returns (%)
1 week YTD
Aggregate 0.0 5.2
Bank loans 0.0 5.7
Convertible 0.7 13.0
Corporate 0.2 9.1
High yield 0.4 9.0
MBS -0.1 3.6
Municipal -0.1 4.8
Preferreds 0.3 11.4
TIPS -0.8 4.9
Treasury 0.0 4.6
Global bond total returns (%)
1 week YTD
EM Local 0.6 4.3
EMD USD 0.3 9.5
Global Agg -0.3 4.2
Global Agg Ex-U.S. -0.6 3.6
Multiverse -0.3 4.4
Commodities (%)
1 week YTD
BBG Com Ind 0.9 2.6
Oil (WTI) -2.6 14.3
Gold -0.1 4.5
Currencies (USD) (%)
1 week YTD
EM FX 0.1 1.8
AUD -1.9 -2.3
CAD -0.6 2.2
CHF -1.1 -1.2
EUR -1.0 -1.8
GBP -1.2 -1.0
JPY -0.4 1.2

U.S. economy

GDP

Jobs

Inflation

Ex-U.S.

Regions/countries

Fund industry overview

Total net flows: open-end funds and ETFs ($B) as of 4/30/19

as tracked by Strategic Insight
MONTH 12 Month ASSETS
U.S. equity -0.6 24.7 8,483.9
Sector equity -0.6 -37.3 881.9
Allocation -5.7 -72.7 1,252.6
International equity 1.0 11.2 3,183.6
Alternative -1.6 -22.3 186.8
Commodities -1.7 -5.2 89.3
Taxable bond 35.0 166.8 3,930.9
Municipal bond 7.4 35.8 762.7
Total all long-term funds 32.3 59.7 18,785.0

Leading Morningstar fund categories by monthly net flows ($B) as of 4/30/19

MONTH 12 Month ASSETS
Intermediate Core Bond 14.1 34.8 840.8
Intermediate Core-Plus Bond 7.6 2.9 653.6
Large Blend 7.3 90.3 3,735.6
Long Government 3.9 14.9 58.3
Multisector Bond 3.7 -0.9 235.4

Lagging Morningstar fund categories by monthly net flows ($B) as of 4/30/19

MONTH 12 Month ASSETS
Health -3.7 3.7 167.6
Foreign Large Value -3.6 -14.9 201.2
Bank Loan -3.0 -24.8 117.1
Foreign Large Growth -2.8 -15.4 462.4
Large Value -2.3 -17.6 1,165.1
Important disclosures

Unless otherwise noted, all data is from FactSet.

The data provided is for informational purposes only and is not an endorsement of any security, mutual fund, sector, or index. This does not illustrate the performance of any John Hancock fund. The information contained here is not guaranteed as to accuracy or completeness. All economic and performance information is historical and does not guarantee future results.

The Dow Jones Industrial Average is a price-weighted index comprising 30 widely traded blue chip U.S. common stocks. The NASDAQ Composite Index is a market-value-weighted index of all common stocks listed on the NASDAQ stock exchange. The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States. The MSCI Europe, Australasia, and Far East (EAFE) Index tracks the performance of publicly traded large- and mid-cap stocks of companies in those regions. The Cboe Volatility Index (VIX) shows the market’s expectation of 30-day volatility and is constructed using the implied volatilities of a wide range of S&P 500 Index options. Weekly and year-to-date figures for the VIX show percentage changes, not investment returns. It is not possible to invest directly in an index.

The Treasury yield curve is derived from available U.S. Treasury securities trading in the market and is provided directly by the U.S. Federal Reserve. The spread measures the difference in yield between two government securities. A normal (positive) yield curve occurs when longer-term rates are higher than shorter-term rates. The opposite holds true for an inverted yield curve. Year-to-date changes in U.S. Treasury bond yields are shown in basis points (BPS).  One hundred basis points equals one percent.

Oil prices are represented by West Texas Intermediate (WTI) crude oil.

The G20 countries comprise a mix of the world’s largest advanced and emerging economies, representing about two-thirds of the world’s population, 85% of global gross domestic product, and over 75% of global trade.

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