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John Hancock: Weekly Market Recap Week Ended August 6th

August 10, 2021

 

Jobs surge

A better-than-expected monthly jobs report on Friday may have eased concerns about the U.S. economic recovery’s resilience amid the recent spike in Delta variant cases. In July, the economy generated 943,000 new jobs—the largest monthly gain in 11 months—as the unemployment rate fell to 5.4%. Average hourly earnings grew 4.0% on a year-over-year basis.

 
Earnings beat rate

With the vast majority of  earnings season behind as of Friday, 87% of the S&P 500 companies that had reported second-quarter results exceeded analysts’ earnings estimates, according to FactSet. That so-called beat rate ranks above the 75% five-year average, and it’s currently the highest rate since FactSet began tracking that data in 2008.

 
Price check

A government report scheduled to be released on Wednesday will show whether a monthly spike in prices in June carried over into July. The Consumer Price Index released last month showed that prices surged 5.4% for the 12-month period that ended in June—the most in any 12-month period since 2008.

 
Bond reversal

Prices of U.S. government bonds fell, sending yields higher and breaking a string of five consecutive weekly yield declines. After slipping below 1.20% earlier in the week—the lowest in six months—the yield of the 10-year U.S. Treasury bond climbed on Friday to around 1.29%. Nevertheless, that’s down sharply from a recent peak of 1.74% in March.

 

Source: https://wmr.jhinvestments.com/