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MARKET RECAP*

  • The stock market returned modest gains in July as trade tensions between the US and EU cooled
  • The S&P 500 finished the month with a positive 3.7% return, its best month since January 2018
    • Top Sectors: Industrials (+7.3%), Health Care (+6.6%), Financials (+5.3%)
    • Bottom Sectors: Real Estate (+1.1%), Energy (+1.4%), Utilities (+1.9%)
  • Large Cap Value beat Large Cap Growth in July by a slight margin (+1.1%)
    • Value beat Growth for the first time since March and the widest spread since September 2017
  • Small Cap stocks gained 1.7% on the month, underperforming both large and mid-cap stocks
  • International Developed countries continued to underperform U.S. stocks by 1.0% on the month
  • Emerging Markets rose 3.5% on the month as trade war fears lightened in July
  • Long-Term Treasury yields rose slightly on the month as the yield curve shifted slightly upwards
    • The ten-year Treasury yield reached a high of 2.98%, ending the month at 2.96%

ECONOMIC NEWS**

  • The economy created 157,000 jobs in July, coming in well under expectations of 190,000
    • However, the jobs created in May and June were revised up by 59,000
    • This reflects an economy expanding at near the fastest rate since the recession ended 10 years ago
  • Gross Domestic Product (GDP) growth increased at an annual rate of 4.1% in the second quarter of 2018
    • 4.1% is its highest percent change from the previous quarter since 2014
  • Wages rose 2.7% for all workers in July, continuing for a third straight month
  • Core inflation remained at 2.3% in July, with the Fed continuing to look at raising rates going forward

Asset Performance 7/31/2018**

 

*Merrill Lynch**Bloomberg. Charts are shown for illustrative purposes only. Respective services provided by ARGI Investment Services, LLC, a Registered Investment Adviser, ARGI CPAs and Advisors, PLLC, ARGI Business Services, LLC, and Advisor Insurance Solutions. All are affiliates of ARGI Financial Group.