July 2017 Market Recap

 

(For the month ended July 31, 2017.)

July appeared to be another trifecta for the stock market. All three major benchmarks hit new records as the month drew to a close. Year on year gains ran to double digits across a broad swath of the market, from the blue chips of the Dow Jones to the technology heavy NASDAQ Composite. Strong company performance may be one factor in the price rise. By the end of July, 57% of the firms in the S&P 500 had reported their second quarter results. According to FactSet’s July 28 Earnings Insight, a record number of them — 73% — reported that they beat their pre-release sales estimates. The same number also beat their earnings estimates.

Through 7/31/17* July YTD 1-Year 3-Year Annualized 5-Year Annualized Closing Value
S&P 500 1.9% 10.3% 13.7% 8.6% 12.4% 2,470.30
Dow Jones Industrial Average 2.5% 10.8% 18.8% 9.7% 11.0% 21,891.12
NASDAQ Composite 3.4% 17.9% 23.0% 13.3% 16.6% 6,348.12

Source: DST Systems, Inc. The S&P 500, Dow Jones Industrials, and NASDAQ Composite are unmanaged indexes. It is not possible to invest directly in an index. Index performance does not reflect the effects of investing costs and taxes. Actual results would vary from benchmarks and would likely have been lower. Past performance is no guarantee of future results. Not responsible for any errors or omissions.

*Price only. Does not include dividends.

Economy Watch Early results suggest that the economy more than doubled its growth rate in the second quarter. According to the Commerce department’s advance estimate, the economy grew at an annual rate of the 2.6% after inflation was taken into account. That compares with 1.2% in the first quarter. Keep in mind that the advance estimate is based on fragmentary data and is often revised in subsequent months.

Consumer Indicators Consumer prices rose an average 1.6% in the latest 12-month period. Energy prices rose faster than average, food slower. The employment situation changed little, with the headline unemployment rate at 4.4%.

Bond Market Update The benchmark 10-year Treasury bond yield closed out the month at about 2.3%, virtually the same as where it started. The benchmark remained well below its historical average.