John Hancock: Weekly Market Recap Week Ended September 29

Yields push even higher

With the notable exception of 2-year Treasuries, yields of most categories of government bonds extended their recent climb, with the 10-year Treasury yield rising above 4.50% for the first time since October 2007. Similarly, the 30-year yield eclipsed 4.70%, the highest since February 2011.

Housing trouble

The average U.S. mortgage rate climbed to the highest level in 23 years by one measure, and sales of new homes fell short of expectations. The government reported that new home sales fell 8.7% in August relative to July.

Earnings outlook

Ahead of third-quarter earnings season, more U.S. companies have scaled back their earnings-per-share expectations than raised them. As of Friday, 74 companies in the S&P 500 had issued negative guidance versus 42 that provided a more positive outlook than they had previously, according to FactSet. Initial earnings reports are scheduled to be issued in mid-October, starting with some of the biggest banks.

Jobs ahead

A U.S. labor market update due out on Friday will show whether the recent trend of a jobs growth slowdown extended into September. In August, the economy generated 187,000 new jobs, well below the monthly average of 271,000 jobs over the past 12 months. August’s unemployment rate rose to 3.8% as more Americans joined the workforce.

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