{"id":6453,"date":"2019-07-08T12:05:58","date_gmt":"2019-07-08T17:05:58","guid":{"rendered":"http:\/\/schenkelberg.investments\/?p=6453"},"modified":"2019-07-08T12:06:12","modified_gmt":"2019-07-08T17:06:12","slug":"market-update-2019-second-quarter","status":"publish","type":"post","link":"https:\/\/schenkelberg.investments\/?p=6453","title":{"rendered":"Market Update &#8211; 2019 Second Quarter"},"content":{"rendered":"\n<p class=\"has-text-color has-medium-font-size has-very-dark-gray-color\"><strong>U.S. Versus <a>International<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-text-color has-very-dark-gray-color\"><a>The S&amp;P 500, an index of large U.S. companies, posted a total return\nof 4.3% for the Second Quarter of 2019. U.S. stocks outperformed international\nfor the quarter as measured by the All Country World Index ex-U.S. stocks, a\nrepresentation of international stocks outside the U.S. Total return for the Second\nQuarter of 2019 was 3.8%.<\/a><\/p>\n\n\n\n<p>The performance gap between U.S. and international stocks was relatively\nmuted in the second quarter, despite major headlines surrounding China\/U.S.\ntrade negotiations. Equity markets fell hard in May, surrounding tougher talks\nout of Washington related to potential trade tariffs against Chinese-made\ngoods. Markets bottomed on June 3<sup>rd<\/sup> as these trade talks eased and\nthe Federal Reserve softened its stance on interest rates, leaving open the\npossibility of a rate decrease. These events led to the strongest return for\nthe month of June since 1938 in the Dow Jones Industrial Average Index.<\/p>\n\n\n\n<p>European stocks performed very well in the second\nquarter, with the German DAX Index up 7.6%. German industrial output and\nexports fell sharply in April due to trade disputes between the United States\nand both China and the European Union. As these disputes eased in the second\nquarter, stocks took a positive turn. Thomson Reuters also reported an\nimprovement in the services sector that has been helping the German\neconomy.&nbsp;&nbsp;&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>U.S.\nSectors<\/strong><\/h3>\n\n\n\n<p class=\"has-text-color has-very-dark-gray-color\"><a>Top performing U.S.\nsectors as reported by J.P. Morgan for the second quarter of 2019 by total\nreturn included Financial Services (8.4%), Basic Materials (5.9%) and Consumer\nCyclical (5.9%). Laggards for the second quarter include Energy (-3.8%), Healthcare\n(1.3%) and Real Estate (1.7%). Federal Reserve indications of a more dovish\nstance on interest rates helped drive Financial Services performance in the\nsecond quarter.<\/a><\/p>\n\n\n\n<p>Growth stocks remained strong in the second quarter\nas a whole as investors continue to seek companies with solid revenue growth\nopportunities regardless of valuation. There was quite a lot of volatility with\nsector leadership bouncing between cyclical versus defensive sectors, depending\non the headlines for U.S.\/China trade talks and Federal Reserve policy. Energy\nstocks gave back much of their strong performance from the first quarter as oil\nprices remained volatile.<\/p>\n\n\n\n<p>Investors remain cautious regarding economic and\nearnings growth going forward. S&amp;P 500 earnings dropped from the third\nquarter 2019 to the fourth quarter. First quarter earnings have yet to be\nfinalized; however, estimates from FactSet and S&amp;P indices indicate they\nwill not top third quarter numbers. In fact, the third quarter of 2018 may\nrepresent a high for earnings for the rest of the year, with second quarter\nearnings marking the first year-over-year decline since 2016. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Versus International The S&amp;P 500, an index of large U.S. companies, posted a total return of 4.3% for the Second Quarter of 2019. U.S. stocks outperformed international for the quarter as measured by the All Country World Index ex-U.S. stocks, a representation of international stocks outside the U.S. Total return for the Second Quarter [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[119,123],"tags":[],"class_list":["post-6453","post","type-post","status-publish","format-standard","hentry","category-market-commentary","category-market-performance"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7kXxe-1G5","jetpack-related-posts":[{"id":6302,"url":"https:\/\/schenkelberg.investments\/?p=6302","url_meta":{"origin":6453,"position":0},"title":"Market Update &#8211; First Quarter 2019","author":"J.J. Schenkelberg, CFA","date":"April 12, 2019","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 13.6% for the First Quarter of 2019. U.S. stocks outperformed international for the quarter as measured by the All Country World Index ex-U.S. stocks, a representation of international stocks outside the U.S. Total\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6623,"url":"https:\/\/schenkelberg.investments\/?p=6623","url_meta":{"origin":6453,"position":1},"title":"Market Performance Update. First Quarter 2022","author":"J.J. Schenkelberg, CFA","date":"April 12, 2022","format":false,"excerpt":"Performance Source: Koyfin U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of -5.0% for the First Quarter of 2022. U.S. stocks marginally outperformed international again for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international stocks outside\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2022\/04\/image-5.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":6753,"url":"https:\/\/schenkelberg.investments\/?p=6753","url_meta":{"origin":6453,"position":2},"title":"U.S. Versus International\/U.S. Sectors","author":"J.J. Schenkelberg, CFA","date":"April 3, 2024","format":false,"excerpt":"IndexFirst Quarter 2024Year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To-Date 2024S&P 50010.4%10.4%Dow Jones Industrial Average6.0%6.0%Russell 20005.1%5.1%\u00a0\u00a0MSCI All Country World Index ex-US5.0%5.0%\u00a0\u00a0Aggregate Bond-0.8%-0.8% Performance Source: Bespoke Investments Total Return U.S. Versus International The S&P 500, Index, an index of large U.S. companies, posted a total return of 10.4% for the First Quarter of 2024. Large U.S. stocks\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6558,"url":"https:\/\/schenkelberg.investments\/?p=6558","url_meta":{"origin":6453,"position":3},"title":"Market Update &#8211; Second Quarter 2021","author":"J.J. Schenkelberg, CFA","date":"July 6, 2021","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 8.2% for the Second Quarter of 2021. This performance almost matched the first quarter for a year-to-date return of 14.4%. U.S. stocks outperformed international again for the quarter as measured by the iShares\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2021\/07\/image.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":6534,"url":"https:\/\/schenkelberg.investments\/?p=6534","url_meta":{"origin":6453,"position":4},"title":"Market Update &#8211; Third Quarter 2020","author":"J.J. Schenkelberg, CFA","date":"October 12, 2020","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 8.9% for the Third Quarter of 2020, bringing performance to 5.6% year-to-date in 2020. U.S. stocks outperformed international for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6182,"url":"https:\/\/schenkelberg.investments\/?p=6182","url_meta":{"origin":6453,"position":5},"title":"Market Performance Breakdown &#8211; Fourth Quarter 2017","author":"J.J. Schenkelberg, CFA","date":"January 9, 2018","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 21.8% for 2017 and 6.6% for the 13 weeks ending December 31, 2017. U.S. stocks lagged behind international for the quarter as measured by the All Country World Index ex-U.S. stocks, a representation\u2026","rel":"","context":"In &quot;Market Commentary&quot;","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6453"}],"version-history":[{"count":1,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6453\/revisions"}],"predecessor-version":[{"id":6454,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6453\/revisions\/6454"}],"wp:attachment":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}