|
|
|
|
 |
|
Stocks slump in January
Russell Global Index reflects an 8.3% loss for the month
February 1, 2008 — Every segment of the U.S. equity market slumped in January as the broad-market Russell 3000® Index reflected a 6.1% decline for the month. This monthly loss marked the worst since September of 2002.
"Growth stocks in particular took a hit in January," said Steve Wood, senior portfolio strategist. "The technology sector in the Russell 3000 declined 12.3% for the month. By contrast, the financial services sector, which is dominated by value stocks, dipped only 0.8%."
Growth stocks at every capitalization tier in the U.S. market underperformed their value counterparts. The large-cap Russell 1000® Growth Index, for example, reflected a loss of 7.8%, while the Russell 1000 Value Index noted a 4% decline.
U.S. equity returns for January also showed that mega-cap value stocks, as measured by the Russell Top 200® Value Index (-3.8%), provided investors with some of the best returns. By contrast, the smallest growth stocks, as reflected by the Russell Microcap® Value Index (-10.5%), suffered the largest loss among all U.S. market segments measured by Russell Indexes.
"Despite the negative turn for U.S. equities in January, the Russell 3000 could be seen as a bright spot within the Russell Global Index," said Wood. "The Russell Global ex-U.S. Index lost 9.9% as emerging markets, particularly Asia, suffered an especially poor start to 2008."
Wood added that the Russell Global Index (-8.3%), which includes the Russell Developed Index (-7.6%) and Russell Emerging Markets Index (-12.8%), reflected a tough month for markets worldwide.
In the Russell 3000, only 30% of stocks provided investors with a positive return for January. Among the 12 sectors, only autos and transportation (1.6%) gained ground for the month, while technology (-12.3%) and other energy (-12%) sputtered to double-digit losses.
In the Russell 1000, 10 of the 25 top-performing stocks for January are financial services firms, including Washington Mutual (47.6%) and E*Trade Financial (40%), while the month's top-performing stock (EchoStar, 55.2%) is in the technology sector.
Similarly, 12 of the 25 top-performing stocks in the small-cap Russell 2000® Index are financial services firms, including Impac Mortgage Holdings (156.4%). Three top performers in this index though come from the consumer discretionary sector: IHOP (46.3%), Stein Mart (34.5%) and Pier 1 Imports (31%).
| Sector returns for the month of January |
| |
|
Russell 1000 |
|
Russell 2000 |
| Technology |
|
-12.2% |
|
-13.6% |
| Health Care |
|
-4.6% |
|
-7.5% |
| Consumer Discretionary & Services |
|
-4.3% |
|
-6.3% |
| Consumer Staples |
|
-6.6% |
|
-6.2% |
| Integrated Oils |
|
-9.3% |
|
0.5% |
| Other Energy |
|
-12.2% |
|
-9.8% |
| Materials & Processing |
|
-5.5% |
|
-7.4% |
| Producer Durables |
|
-6.0% |
|
-11.0% |
| Autos & Transportation |
|
1.7% |
|
0.6% |
| Financial Services |
|
-0.8% |
|
-0.7% |
| Utilities |
|
-7.4% |
|
-7.9% |
For additional performance figures on Russell's indexes and the user-friendly Russell index returns calculator, please visit: www.russell.com/Indexes.
About Russell: Russell Investments provides strategic advice, world-class implementation, state-of-the-art performance benchmarks and a range of institutional-quality investment products. Russell has more than $228 billion in assets under management as of Dec. 31, 2007, and serves individual, institutional and advisor clients in more than 40 countries. Russell's industry-leading indexes have $4.4 trillion in assets benchmarked to them. Founded in 1936, Russell is a subsidiary of The Northwestern Mutual Life Insurance Company.
Contacts:
Steve Claiborne, 253-439-1858
Russell Investments is the owner of the trademarks, service marks and copyrights related to its indexes.
Russell's indexes are unmanaged and cannot be invested in directly.
RC# 4847
|
|
|
| |
Past REPORTS |
|
|
| |
|
|
|
|
|
WWW.RUSSELL.COM
INDIVIDUAL INVESTORS
INSTITUTIONAL INVESTORS
FINANCIAL PROFESSIONALS
SITE MAP
© Russell Investments 1995-2008. All rights reserved.
Legal information.
Privacy statement.
Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.
Indexes are unmanaged and cannot by invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.
|
