John Hancock: Weekly Market Recap Week Ended January 31st
Mixed month
The S&P 500 slipped 0.2% on a price basis for January, the Dow fell 1.0%, and the NASDAQ posted a 2.0% gain, lifted in part by strong earnings from technology companies. The market’s fast start to 2020 reversed course entering the closing days of the month, and the Cboe Volatility Index jumped more than 36% in January.
Yields slide again
U.S. government bond yields tumbled for the second week in a row, and the yield of the 10-year Treasury bond fell to 1.52%—the lowest in five months. That’s sharply below the 10-year bond’s 1.92% yield at the end of 2019.
Earnings checkup
Through Thursday, January 30, 69% of companies in the S&P 500 that had released fourth-quarter results exceeded analysts’ earnings estimates—a beat rate that ranks slightly below the five-year average, according to FactSet. In aggregate, companies’ earnings were 4.1% above estimates—also below the five-year average.
Steady Fed
As expected, the U.S. Federal Reserve on Wednesday kept interest rates unchanged, marking the second straight meeting with no changes following three consecutive rate reductions in 2019. The Fed committee vote was unanimous.
Source: https://wmr.jhinvestments.com/