John Hancock: Weekly Market Recap Week Ended March 6
International sell-off
Ex-U.S. stock indexes sustained far bigger weekly declines than their U.S. counterparts. An ex-U.S. developed-market benchmark, the MSCI EAFE Index, and an emerging-markets counterpart, the MSCI Emerging Markets Index, were both down nearly 7% for the week.
Inside Q4 earnings
Companies in the S&P 500 posted an average earnings gain of 14.0% over the same quarter a year earlier, according to FactSet data from the recently concluded fourth-quarter earnings season. That result marked the fifth consecutive quarter of double-digit growth. Information technology posted a 33.0% earnings gain, the highest among all 11 sectors.
Inflation readings ahead
A Consumer Price Index report scheduled for release on Wednesday and a Personal Consumption Expenditures Price Index reading due on Friday could offer some clarity about inflation trends after recently divergent results. The most recent monthly CPI report showed that inflation eased to a 2.4% annual rate, while the PCE report showed a 2.9% rate, with prices rising at the fastest pace in nearly a year.
Jobs setback
February’s net loss of 92,000 jobs came as a surprise, as most economists had forecast that Friday’s report would show a gain of around 50,000. The setback marked the third monthly jobs decline over the past five months, and initial figures for December and January were revised downward by a combined 69,000 jobs.
Read Full Article: https://www.jhinvestments.com/weekly-market-recap#market-moving-news

