350 / 708
12
Stocks climbed to new highs in July. The S
&
P
500
gained
3
.
7%
and the Russell
2000
Index gained
6
.
0%
as the reaction to recent economic data and
second-quarter earnings has been positive. As
expected, the Federal Reserve left short-term interest
rates unchanged at its July policy meeting.
The small-blend Morningstar Category outperformed
the large-blend category in July.
DFA US Small Cap
DFSTX
, with a Morningstar Analyst Rating of Gold,
rose
5
.
0%
, while Gold-rated Vanguard Large Cap Index
VLACX
rose
3
.
8%
.
Technology was the top-performing sector in July,
gaining approximately
8%
. The sector was lifted by
better-than-expected earnings from
Apple
AAPL
,
Microsoft
MSFT
,
FB
, and
Alphabet
GOOG
.
Consumer discretionary stocks also posted solid
results in July—online retailer
eBay
EBAY
rose more
than
30%
while
General Motors
GM
rose more
than
11%
.
After gaining for most of the year, Brent crude
prices fell
14
.
5%
in July, ending the month at
$42
.
46
per barrel, as excess supply concerns resurfaced.
Hence, energy was the worst-performing sector in
July. Neutral-rated
Vanguard Energy
lost
1
.
1%
.
The dividend-heavy utilities and consumer staples
sectors also took a breather in July, falling
0
.
8%
and
0
.
4%
, respectively.
Overseas markets also posted gains in July. The
MSCI
EAFE
Index gained
5
.
1%
—shaking off the June Brexit
vote—and is now in the black for the year. Austrian,
Spanish, and German stocks all gained more than
6%
, while U.K. stocks rose
2
.
6%
. Emerging-markets
stocks gained
5
.
0%
in July, led by Brazil’s
10%
gain,
South Africa’s
9%
gain, and Czech Republic’s
8%
gain.
Turkish stocks fell
6%
after a failed military coup.
K
Contact Andrew Daniels at
andrew.daniels@morningstar.comTotal Return
%
Through
A N N U A L I Z E D
07-31-16
1Mo
YTD
3Yr
5Yr
10Yr
Benchmark Performance
Stocks Hit New Highs
Market Overview
|
Andrew Daniels
Large Growth
5.0
2.9
10.3
11.4
8.0
Large Blend
3.7
5.9
8.9
11.4
6.8
Large Value
3.3
7.4
7.3
10.8
5.7
Mid-Cap Growth
4.6
4.6
7.6
9.7
7.7
Mid-Cap Blend
4.2
7.1
7.0
10.0
7.1
Mid-Cap Value
3.9
9.0
7.3
10.4
7.1
Small Growth
5.7
4.9
6.1
9.3
7.7
Small Blend
5.0
8.1
5.8
9.4
6.8
Small Value
4.9
9.8
5.5
9.4
6.5
Allocation--70% to 85% Equity
3.1
5.9
5.8
7.1
5.0
Allocation--30% to 50% Equity
1.9
6.3
4.2
5.1
4.7
Allocation--50% to 70% Equity
2.6
5.9
5.6
6.9
5.5
Communications
3.1
11.6
8.2
8.9
5.7
Financial
3.9
-1.5
4.2
8.8
1.6
Global Real Estate
4.7
11.1
7.6
7.3
3.2
Health
6.7
-3.5
14.2
17.8
11.8
Natural Resources
2.3
17.2
-4.3
-4.5
0.1
Equity Precious Metals
9.7 114.6
7.8
-10.3
1.0
Real Estate
3.9
14.8
13.3
11.8
6.6
Technology
7.5
5.2
13.2
11.6
9.8
Utilities
-0.2
19.3
9.0
10.4
7.2
S&P 500
3.7
7.7
11.1
13.3
7.7
S&P MidCap 400
4.3
12.6
9.9
12.3
9.3
Russell 2000
5.9
8.4
6.8
10.4
7.2
Diversified Pacific/Asia
4.0
6.2
5.2
4.0
3.9
Diversified Emerging Mkts
4.2
10.8
-0.4
-2.3
3.5
Europe Stock
3.6
-2.0
1.4
3.5
2.7
Foreign Large Blend
4.3
1.1
1.5
2.3
1.8
Foreign Large Growth
4.2
1.9
3.0
3.7
3.3
Foreign Large Value
4.1
1.0
0.3
1.5
0.7
Foreign Small/Mid Growth
4.6
1.5
5.1
5.8
5.4
Foreign Small/Mid Value
5.1
3.7
3.5
3.4
3.2
World Stock
4.1
4.5
5.3
6.6
4.8
MSCI World
4.2
4.9
6.6
7.9
4.8
MSCI Emerging Markets
5.4
13.4
-0.4
-3.2
3.2
MSCI EAFE
4.0
0.9
1.6
2.9
1.8
MSCI Europe
4.2
-1.2
0.9
2.6
1.8
MSCI Latin America
5.4
30.7
-8.8
-11.1
-0.2
MSCI Pacific
6.6
3.5
3.8
3.9
2.4
High Yield Bond
2.2
8.7
3.0
4.9
6.1
Inflation-Protected Bond
0.7
5.9
1.2
1.0
3.6
Intermediate-Term Bond
0.9
5.8
3.8
3.5
4.7
Muni National Long
-0.1
4.4
6.3
5.5
4.4
World Bond
1.2
7.8
2.1
1.7
4.5
BarCap US Agg Bond TR USD
0.5
5.9
4.2
3.5
4.9
BofAML US HY Master II TR
2.5
12.1
4.4
6.0
7.6
BarCap Municipal TR USD
0.1
4.4
5.9
5.1
5.0