Weekly Market Recap

Week ended November 10

Market-moving news

Market-moving news

Market-moving news
Streak snapped

The S&P 500 and the Dow both slipped for the week, ending an eight-week run of gains that sent the S&P 500 up about 5% and the Dow up 8%. The NASDAQ Composite also fell slightly, snapping a string of six positive weeks in a row.

Market-moving news
Taxing matters

Tax policy was one of the week’s negative catalysts for stocks. A Senate version of President Trump’s tax overhaul significantly differs from the House’s proposal, which could complicate talks to reconcile the measures. For example, the Senate bill would delay a cut in the corporate tax rate by a year relative to the House version.   

Market-moving news
Small-cap stumble

The diminished prospects for quick congressional approval of a tax overhaul weighed heavily on small-cap stocks. The Russell 2000 Index fell 1.3%, the steepest weekly decline for that small-cap benchmark in three months.

Market-moving news
Brexit progress

The stalled talks to negotiate the terms of the United Kingdom’s exit from the European Union resumed, and negotiators said an agreement is possible by December. The pound rose more than 1% relative to the U.S. dollar, snapping a three-week string of weekly declines.

Market-moving news
Rough day

After posting gains for seven trading sessions in a row, the Dow retreated on Thursday. Concerns about President Trump’s tax proposal weighed on the market, and the Dow fell by as much as 253 points in the morning before closing down 101 points for the day.

Market-moving news
Japanese volatility

While U.S. trading was volatile on Thursday, it was tame compared with the Japanese market. A Japanese index climbed to its highest level since 1992 before tumbling later in the day to record its biggest intraday move since November 8, 2016, the date of the U.S. presidential election. 

Crude awakening

Crude oil prices surged to their highest level since January 2017 as geopolitical tensions escalated in the Middle East. Prices climbed above $57 per barrel on Monday, but retreated slightly later in the week.

Earnings scorecard

Rising earnings continued to provide a positive catalyst for stocks. According to FactSet, third-quarter earnings per share rose an average 6.4% compared with the same period a year earlier, based on figures from the nearly 90% of companies in the S&P 500 that had reported third-quarter results as of November 9.
 

 

The week ahead: November 13-17

Monday

  • Federal budget report, U.S. Department of Treasury

Tuesday

  • Producer Price Index, U.S. Bureau of Labor Statistics

 

 

Wednesday

  • Consumer Price Index, U.S. Bureau of Labor Statistics
  • Retail sales, U.S. Census Bureau
  • Business inventories, U.S. Census Bureau

Thursday

  • Industrial production and capacity utilization, U.S. Federal Reserve
  • U.S. import and export price indexes, U.S. Bureau of Labor Statistics  

Friday

  • Housing starts, U.S. Census Bureau

     

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 11/10/17
1 week
-0.4-0.20.1 Large
0.0-0.1-0.2 Mid
-1.5-1.3-1.1 Small
Value Core Growth
YTD
8.617.126.2 Large
8.413.620.4 Mid
3.79.916.7 Small
Value Core Growth
Index/market total returns as of 11/10/17 (%)
Close Week YTD
Dow Jones Industrial Average 23,422.2 -0.4 21.0
NASDAQ Composite Index 6,750.9 -0.1 26.6
S&P 500 Index 2,582.3 -0.1 17.3
MSCI EAFE Index 1,999.6 -0.4 22.2
International/developed (%)
1 week YTD
EAFE -0.4 22.2
Europe -1.4 22.3
France -1.9 27.2
Germany -2.0 26.3
Italy -1.4 29.8
Japan 1.2 22.9
Spain -2.0 24.9
Switzerland -1.5 18.2
U.K. -0.4 15.1
Emerging markets (%)
1 week YTD
EM 0.2 33.8
Brazil -0.9 19.6
China 2.4 54.3
India -2.4 32.1
Indonesia -0.8 16.7
Korea -1.3 44.9
Mexico 0.0 16.2
Russia 5.4 4.7
Taiwan -0.7 30.2
S&P 500 sectors (%)
1 week YTD
S&P 500 Index -0.1 17.3
Consumer discretionary 0.8 14.8
Consumer staples 2.1 7.4
Energy 1.3 -5.0
Financials -2.6 13.6
Healthcare -0.5 19.5
Industrials -1.0 13.7
Information tech 0.1 38.8
Materials -1.2 18.5
REITs 3.3 12.6
Telecom -1.3 -14.5
Utilities 0.5 17.1

Fixed income, currencies, and commodities

U.S. fixed-income style total returns (%) as of 11/10/17
1 week
0.0-0.2-1.0 Large
0.0-0.2-1.3 Mid Quality
-0.3-0.8-1.3 Small
Value Core Growth
INTEREST RATE SENSITIVITY
YTD
0.61.35.9 Large
0.72.18.9 Mid Quality
5.06.613.2 Small
Value Core Growth
INTEREST RATE SENSITIVITY
U.S. Treasury bond yields as of 11/10/17 (%)
END OF WEEK PRIOR WEEK
2 Yr 1.65 1.62
10 Yr 2.38 2.32
30 Yr 2.86 2.79
2-10 spread 0.72 0.70
10-30 spread 0.48 0.48
U.S. bond sector total returns (%)
1 week YTD
Aggregate -0.4 3.0
Bank loans -0.2 1.9
Convertible -0.2 16.2
Corporate -0.8 5.1
High yield -0.8 6.6
MBS -0.3 2.1
Municipal 0.2 5.3
Preferreds -0.2 10.8
TIPS -0.1 2.0
Treasury -0.3 2.0
Global bond total returns (%)
1 week YTD
EM Local 0.4 10.4
EMD USD -0.8 8.3
Global Agg 0.1 5.8
Global Agg Ex-U.S. 0.4 7.6
Multiverse 0.0 6.1
Commodities (%)
1 week YTD
BBG Com Ind 0.5 0.5
Oil 2.0 -1.1
Gold 0.4 9.9
Currencies (USD) (%)
1 week YTD
EM FX 0.27 7.01
AUD 0.33 5.99
CAD 0.77 5.81
CHF 0.56 2.18
EUR 0.39 10.57
GBP 1.17 6.99
JPY 0.85 2.95

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 10/31/17

as tracked by Strategic Insight
MONTH 12 Month ASSETS
U.S. equity 11.9 52.8 7,405.7
Sector equity 3.9 29.3 854.8
Allocation -2.8 -38.0 1,266.6
International equity 19.5 208.0 3,081.8
Alternative 2.0 -2.3 211.4
Commodities -0.3 -2.9 90.3
Taxable bond 39.2 360.1 3,551.7
Municipal bond 2.7 4.7 692.9
Total all long-term funds 72.4 582.8 17,172.4

Leading Morningstar fund categories by monthly net flows ($B) as of 10/31/17

MONTH 12 Month ASSETS
Intermediate-term bond 18.3 130.7 1,344.9
Large blend 15.2 120.9 2,990.6
Foreign large blend 11.9 129.3 1,138.6
Diversified emerging markets 5.3 47.7 537.4
Multisector bond 4.3 34.9 228.0

Lagging Morningstar fund categories by monthly net flows ($B) as of 10/31/17

MONTH 12 Month ASSETS
Large growth -3.3 -69.9 1,547.5
Large value -1.9 -18.7 1,165.4
Mid-cap value -1.5 -5.9 258.6
Health -1.4 -6.9 159.9
Mid-cap growth -1.1 -8.6 288.9
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