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**
