John Hancock: Weekly Market Recap Week Ended July 3rd

Bullish quarter

.The 20.5% return that the S&P 500 posted in the second quarter was the index’s best quarterly result since 1998, while the Dow’s 18.5% return was that index’s biggest since 1987. For the S&P 500, the last three months produced a near-complete turnaround from the first quarter, leaving the index with a -3.1% return for the first half of the year.   

Growth tops value

Through the first half of the year, more than 33 percentage points separated the performance of a growth stock index from that of a value stock index, according to Morningstar. If growth stocks maintain that gap through the end of the year, it would be growth’s largest margin of full-year outperformance since 1999. 

Lowered expectations

Over the last three months, analysts reduced their second-quarter earnings estimates for S&P 500 Index companies by 37%—the largest reduction since FactSet began tracking such data in 2002. Companies will begin reporting second-quarter results in mid-July, starting with major banks.

Sector leaders and laggards

The just-ended second quarter produced big performance gaps at the sector level. Consumer discretionary, information technology, and energy led the pack, generating returns greater than 30%. On the flip side, utilities and consumer staples both posted single-digit returns.

Source: https://www.jhinvestments.com/weekly-market-recap