John Hancock: Weekly Market Recap Week Ended July 17th

S&P 500 @ break-even

With its latest weekly gain, the S&P 500 came close to returning to its level at the end of last year, as it moved within 0.2% of the year-to-date break-even point; on a total return basis, it was up 0.9%. On Friday, the index was up 44.1% from a recent low in March; however, it was 4.8% shy of its record high achieved the previous month. 

Style shift

Value stocks outperformed their growth counterparts by a wide margin, marking a sharp departure from the trend of recent weeks and year to date. A U.S. value stock benchmark rose more than 3% for the week, while a growth index slipped nearly 1%, narrowing the vast year-to-date performance gap between the two equity styles.

Retail support 

Shoppers continued to provide momentum for an economic recovery, as a report released on Thursday showed that overall U.S. retail sales rose for the second month in a row, exceeding economists’ expectations. However, the 7.5% increase in June preceded this month’s spike in new U.S. coronavirus cases, which could weigh on July’s retail activity. 

Bifurcated market

Although the S&P 500 and the Dow both rose for third week in a row, their gains were modest, and the NASDAQ slipped, with some of that index’s technology stocks enduring a rough week. However, industrial stocks rallied, lifting the Dow, which outperformed its peers.

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