Weekly Market Recap

Week ended July 21

Market-moving news

Market-moving news

Market-moving news
Edging higher

While the major stock indexes didn’t make any big moves during the week, the S&P 500 climbed to a new record high and the NASDAQ eclipsed a record that it had set in early June. The Dow set a record on Wednesday, but pulled back later in the week and slipped overall.  

Market-moving news
Tech comeback

Information technology stocks endured a rough ride during June, but they’ve made a comeback in recent weeks and were a key reason why the NASDAQ set a record on Wednesday. The index has gained about 5% since July 6, and the tech sector remains the strongest performer year to date. 

Market-moving news
Fed ahead

After lifting interest rates at its last meeting, the U.S. Federal Reserve Board is expected to keep current rates intact when it concludes a two-day meeting on Wednesday. Analysts will be watching for clues as to whether recent weakness in inflation could give the Fed pause as it considers the timing of its next rate hike. 


 

Market-moving news
Chinese sell-off

Chinese stocks on Monday suffered their worst single-day decline in seven months after Chinese President Xi Jinping issued a warning about high levels of debt in the nation’s financial system. The president also announced the formation of a committee to coordinate financial regulations. 

 

Market-moving news
Triple play

The S&P 500, the Dow, and the NASDAQ all closed at record levels on Wednesday, marking the first time in a month and a half that all three major indexes set records on the same day. Shares of energy and healthcare companies led the market higher. 

Market-moving news
Euro policy

The European Central Bank on Thursday kept its interest-rate policy and its bond-buying program unchanged. The bank’s president, Mario Draghi, said that recent positive momentum in European economic growth hasn’t yet translated into inflation. 

Currency impact

Following Thursday’s announcement from the European Central Bank, the euro jumped to its highest level in nearly two years versus the U.S. dollar. European bond markets stayed relatively calm. 

Yield squeeze

U.S. government bond yields fell for the second week in a row, with the yield of the 10-year U.S. Treasury bond slipping to 2.23%. As recently as July 7, the yield was 2.39%. 

The week ahead: July 24-28

Monday

  • Existing home sales, National Association of Realtors 

Tuesday

  • U.S. Federal Reserve Board opens two-day policy meeting
  • S&P/Case-Shiller 20-City Composite Home Price Index
  • Consumer Confidence Index, The Conference Board 

Wednesday

  • U.S. Federal Reserve Board concludes two-day policy meeting
  • New home sales, U.S. Census Bureau

Thursday

  • Durable goods orders, U.S. Census Bureau 

Friday

  • Second-quarter GDP, advance estimate, U.S. Bureau of Economic Analysis University of Michigan Index of Consumer Sentiment
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. 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.

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 7/21/17
1 week
0.20.60.9 Large
0.60.50.4 Mid
0.50.50.5 Small
Value Core Growth
YTD
5.611.517.7 Large
6.79.813.6 Mid
1.56.612.2 Small
Value Core Growth
Index/market total returns as of 7/21/17 (%)
Close Week YTD
Dow Jones Industrial Average 21,580.1 -0.2 10.7
NASDAQ Composite Index 6,387.8 1.2 19.4
S&P 500 Index 2,472.5 0.6 11.7
MSCI EAFE Index 1,927.7 0.5 16.9
International/developed (%)
1 week YTD
EAFE 0.5 16.9
Europe 0.0 18.7
France -0.3 20.6
Germany -1.2 17.9
Italy 0.4 22.2
Japan 1.5 12.4
Spain -0.3 27.2
Switzerland 0.8 20.8
U.K. 0.4 12.4
Emerging markets (%)
1 week YTD
EM 1.3 25.0
Brazil 1.0 12.4
China 1.6 32.8
India 1.1 27.7
Indonesia -1.6 14.8
Korea 2.9 36.7
Mexico 1.0 32.8
Russia -0.2 -9.3
Taiwan 0.2 24.6
S&P 500 sectors (%)
1 week YTD
S&P 500 Index 0.6 11.7
Consumer discretionary 1.1 12.8
Consumer staples 0.7 8.3
Energy -0.5 -12.3
Financials -0.3 7.5
Healthcare 1.1 18.6
Industrials -1.0 10.4
Information tech 1.1 23.7
Materials 0.0 12.1
REITs 0.8 7.2
Telecom 1.0 -11.6
Utilities 2.6 11.5

Fixed income, currencies, and commodities

U.S. fixed-income style total returns (%) as of 7/21/17
1 week
0.00.31.9 Large
0.10.31.7 Mid Quality
0.30.61.1 Small
Value Core Growth
INTEREST RATE SENSITIVITY
YTD
0.41.66.4 Large
0.72.18.6 Mid Quality
4.45.910.1 Small
Value Core Growth
INTEREST RATE SENSITIVITY
U.S. Treasury bond yields as of 7/21/17 (%)
END OF WEEK PRIOR WEEK
2 Yr 1.34 1.34
10 Yr 2.23 2.31
30 Yr 2.80 2.89
2-10 spread 0.89 0.96
10-30 spread 0.57 0.59
U.S. bond sector total returns (%)
1 week YTD
Aggregate 0.6 2.9
Bank loans 0.3 1.5
Convertible 0.8 12.8
Corporate 0.8 5.0
High yield 0.6 5.9
MBS 0.3 1.9
Municipal 0.7 4.5
Preferreds 0.9 11.0
TIPS 0.5 1.3
Treasury 0.5 2.4
Global bond total returns (%)
1 week YTD
EM Local 1.0 13.2
EMD USD 0.8 7.2
Global Agg 1.3 5.9
Global Agg Ex-U.S. 1.7 7.7
Multiverse 1.2 6.1
Commodities (%)
1 week YTD
BBG Com Ind 0.4 -4.8
Oil -2.1 -19.4
Gold 2.2 8.4
Currencies (USD) (%)
1 week YTD
EM FX 0.62 7.49
AUD 1.36 9.31
CAD 1.15 7.06
CHF 1.89 7.27
EUR 1.83 10.52
GBP -0.73 5.12
JPY 1.35 4.96

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 6/30/17

as tracked by Strategic Insight
MONTH 12 Month ASSETS
U.S. equity -3.6 61.0 6,884.1
Sector equity 0.0 22.2 861.7
Allocation -1.8 -41.1 1,230.2
International equity 29.4 132.3 2,787.3
Alternative 0.7 -6.3 201.8
Commodities 1.2 -0.9 86.2
Taxable bond 33.0 320.5 3,385.5
Municipal bond 3.4 11.6 674.6
Total all long-term funds 62.0 472.5 16,128.1

Leading Morningstar fund categories by monthly net flows ($B) as of 6/30/17

MONTH 12 Month ASSETS
Foreign large blend 15.0 92.0 1,021.1
Intermediate-term bond 10.9 119.0 1,278.7
Large blend 9.5 135.9 2,762.5
Diversified emerging mkts 4.7 44.7 470.2
Corporate bond 4.5 24.0 162.5

Lagging Morningstar fund categories by monthly net flows ($B) as of 6/30/17

MONTH 12 Month ASSETS
Large value -9.2 -4.7 1,119.2
Large growth -3.2 -91.6 1,386.0
Technology -2.1 12.3 155.6
High-yield bond -1.9 -2.1 307.7
Mid-cap blend -1.5 19.9 398.7
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. 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.

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.

Hide disclosure