US Stock Markets Ended Jan. 7, 2022

The S&P 500 Index posted a -1.83% return last week, the first week of 2022. Uncertainty regarding inflation, near term monetary policy, supply chain issues, and Covid-19 had investors re-evaluating their equity exposures as Treasury yields rose, putting growth stocks on the losing end of the stick. The S&P 500 Growth Index declined 4.47% last week while the S&P 500 Value Index pushed higher with a 1.10% return. Sectors leading the slide included real estate, information technology, and health care, which all declined over 4.6%. Managed health care company Humana Inc. was the worst performer in the S&P 500 Index last week, returning -21.71%. The stock declined 19.37% on Thursday after the company announced a drastic cut to its previous 2022 net membership growth estimates for its Medicare Advantage products. Other poor performing health care names included Bio-Techne Corp, Align Technology Inc., West Pharmaceutical Services Inc., and IDEXX Laboratories Inc., all declining over 16%. The energy and financials sectors showed a completely different reaction to the market environment as the S&P 500 Energy Index and the S&P 500 Financials Index returned 10.61% and 5.45%, respectively. Hess Corp, Schlumberger NV, and Occidental Petroleum Corp led the energy names in the index while the best performing financials were Regions Financials Corp, M&T Bank Corp, and Citizens Financial Group Inc., with all six stocks gaining more than 14%. Media company Discovery Inc. posted the best performance in the S&P 500 Index returning 28.12%. The stock jumped on Friday with Bank of America analyst upgrading it to a buy, noting the company's potential once the $43 billion merger with AT&T's entertainment and streaming asset WarnerMedia is complete. Earnings announcements expected this week include JPMorgan Chase & Company, Wells Fargo & Company, BlackRock Inc., and Citigroup Inc., among others.
Posted on Monday, January 10, 2022 @ 8:24 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.