John Hancock: Weekly Market Recap Week Ended February 15th

Bullish comeback

While market gains have been modest in recent weeks, they’ve been impressive taken as a whole. Since stocks sank to a recent low on December 24, the S&P 500 and Dow have both risen around 18%. The NASDAQ has added nearly 21%, exiting a bear market that it entered in late December.

Trade progress

The major stock indexes climbed around 1% on Friday as the United States and China appeared to make progress toward a resolution of their trade conflict. Negotiators met in Beijing, where they discussed a potential framework for a deal. Further talks are scheduled this week in Washington to discuss remaining sticking points.

Earnings test

Although retail sales have recently slipped, most retailers are expected to report quarterly profit and sales growth as earnings season begins to wind down. Analysts cite positive catalysts for major retailers, including a strong labor market, rising wages, and lower gasoline prices. Retailers are traditionally among the last to report quarterly results.

Back on track

The major stock indexes gained 2% to 3%, picking up momentum after finishing mostly flat the previous week. For the Dow, it was the eighth positive week in a row—a run that’s been driven by diminishing concerns over U.S. monetary policy and the U.S.-China trade conflict.

Source: https://wmr.jhinvestments.com