Second Quarter 2017 Market Recap

(For the quarter ended June 30, 2017.)

Stock prices generally rose during the second quarter with major benchmarks setting new records during June. The NASDAQ Composite touched 6,321 on June 8. The Dow Jones Industrials hit 21,528 on June 19. And the S&P 500, also on June 19, reached 2,453. The political landscape proved volatile during the quarter. Early on, there was a cliff-hanger compromise over the federal budget and later came the on-again, off-again move to repeal and replace the Affordable Care Act. But despite these potential crosscurrents, stock trading volume and price volatility were generally within normal ranges during the quarter, with recent gains outpacing longer term averages.

Through 6/30/17* Quarter 1-Year 3-Year Annualized 5-Year Annualized Closing Value
S&P 500

2.57%

15.5%

7.3%

12.2%

2,423.41

Dow Jones Industrials

3.32%

19.1%

8.3%

10.6%

21,349.63

NASDAQ Composite

3.87%

26.8%

11.7%

15.9%

6,140.42

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 The more data came in to the Department of Commerce, the better the economy looked during the first quarter. Initial estimates suggested an annual growth rate of 0.7%. But when all was said and done, growth turned out to have been more like 1.4%.

Fed News The Federal Reserve’s Open Market Committee edged its short-term rate target higher during the quarter. Policy makers now want to see the benchmark short-term interest rate hovering between 1% and 1.25%.

Bond Market Update Long-term rates in the bond market appeared stable during the quarter. The yield on the 10-year Treasury note — a key market benchmark — opened the quarter at 2.35% and then traded in a narrow range through the end of June.