John Hancock: Weekly Market Recap Week Ended June 26
GDP upgrade
The U.S. government’s updated estimate of first-quarter economic growth found that GDP expanded at a 2.1% annual rate, above an earlier estimate of 1.6%. The Commerce Department said its third and final update largely reflected a downward revision to imports, which subtract from GDP. That change offset the negative impact from a weakening in U.S. consumer spending.
Sentiment rebound
A gauge of U.S. consumer sentiment improved amid moderating gasoline prices, snapping a three-month streak of declines that had left sentiment at record lows. The University of Michigan’s survey results showed that sentiment rose to a final June reading of 49.5 from May’s 44.8 figure. Consumers’ long-run inflation expectations fell to 3.3% in June from 3.9% in May.
Price pressures
A monthly report showed inflation running at its highest level in more than three years. Thursday’s Personal Consumer Expenditures Price Index report showed an annual rate of 4.1% in May, in line with most economists’ expectations. Excluding food and energy prices, May’s core PCE inflation was 3.4%.
Jobs ahead
A jobs report due out on Thursday, in advance of Friday’s pre-holiday market closure, will show whether recent strengthening in the labor market extended into June. In May, job growth surpassed economists’ consensus expectations for the third month in a row, with 172,000 jobs added.
Read More: https://www.jhinvestments.com/weekly-market-recap#market-moving-news

