May 2017 Market Recap

(For the month ended May 31, 2017.)

Stocks generally rose during the month as measured by the three major stock market benchmarks. The S&P 500 and NASDAQ Composite closed at historical record highs on May 26, the S&P at 2415.82 and the NASDAQ at 6210.19. The Dow Jones Industrials finished the month about 107 points short of the high-water mark they had touched on March 1. Volume and volatility were generally moderate throughout the month. Ride-sharing firm Uber lost $708 million during the January-March quarter, according to reports in the New York Times and the Wall Street Journal. But the company’s total cash on hand was virtually unchanged from year-end 2016.

Through 5/31/17* May YTD 1-Year 3-Year Annualized 5-Year Annualized Closing Value
S&P 500

1.2%

7.7%

15.0%

7.8%

13.0%

2,411.80

Dow Jones Industrial Average

0.3%

6.3%

18.1%

7.9%

11.1%

21,008.65

NASDAQ Composite

2.5%

15.1%

25.3%

13.5%

17.0%

6,198.52

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 The economy turned out to be stronger in the first quarter than was previously believed. Using more complete data than was available a month ago, the Bureau of Economic Analysis said that the economy grew at a 1.2% annual rate during the quarter. BEA had previously estimated that growth amounted to an annual rate of 0.7%.

Consumer Indicators Consumer prices rose 0.2% in April, said the Bureau of Labor Statistics, paced by a 1.1% increase in energy prices. On the flip side were declines in the average prices for wireless phone service, medical care, motor vehicle insurance, and new cars, among other things.

Bond Market Update Bond yields varied little throughout May. The benchmark constant maturity yield on the 10-year Treasury note stood just over 2.2%.