Last Week Stock Market Recap (February 5-9, 2018)

Last week, February 5-9, 2018, the stock market was as volatile as its ever been. The stock market also had its worst one week in two years. The market indices were down 10% from all-time highs just a couple weeks ago…entering the market into an official “correction” (a correction is defined as 10% dip). The NASDAQ suffered its worst weekly percentage drop since February of 2016, while the Dow and S&P 500 each had the third biggest weekly point drop on record. The Dow alone had 3 of its top 10 biggest daily point drops on record this past week (closing on February 9, 2018).

Here is a recap of the markets and select industries, and just how down each was when the markets closed on Friday, February 9, 2018. You’ll see that all the major corporations were down significantly last week.

U.S. Market Indices

  • S&P 500: -5.2%
  • Dow: -5.2% (down 9.1% from all-time high)
  • NASDAQ: -5.1% (down 8.4% from all-time high)

How did financial stocks do last week?

  • Goldman Sachs: -4.1%
  • Morgan Stanley: -6%
  • UBS: -7.6%
  • Citi: -4.3%
  • JP Morgan Chase: -3.7%
  • Bank of America: -5.1%
  • Wells Fargo: -12.4%
  • US Bank: -5.5%

How did energy stocks do last week?

  • Exxon Mobil: -9.6%
  • Chevron: -3.9%
  • Shell: -6.3%
  • BP: -4.7%
  • HESS: -11.5%
  • Conoco Phillips: -9.3%

How did home builder stocks do last week?

  • Toll Brothers: -4.1%
  • Lennar: -2.2%
  • Pulte Homes: -6.5%

How did construction stocks do last week?

  • Caterpillar: -5.3%
  • John Deere: -6.1%

How did tech stocks do last week?

  • Apple: -2.2%
  • Microsoft: – 3.9%
  • Intel: -4.1%
  • Cisco: -3.4%
  • Adobe: -3.9%
  • Facebook: -7.4%
  • Google: -6.5%
  • Yahoo: -5.3%
  • Amazon: -6.3%
  • ebay: -6.0%

How did department store and retail stocks do last week?

  • Macys: -3%
  • JCPenny: -3.1%
  • Kohl’s: -3.2%
  • Walmart: -4.9%
  • Target: -0.7%
  • Costco: -5.4%

How did airline stocks do last week?

  • American Airlines: -7%
  • United: -4.1%
  • Southwest: -5.5%

How did health care stocks do last week?

  • United Health Group: -4.7%
  • Cigna: -5.2%
  • Anthem: -3.1%

How did my retirement accounts do last week?

Last week my retirement accounts (company 401k and two Roth IRA’s) were down 4.3%, whereas the S&P 500 was down 5.2%. Overall this year, which is only 41-days into 2018, my retirement portfolio is down 2.77%.

The Vanguard Target Retirement 2040 Fund (VFORX) is down 1.98% so far in 2018. This is my personal benchmark because I could invest all my retirement portfolio into one account or choose a number of index funds to diversify. I am doing the latter and this year I am slightly trailing the 2040 Target Date Fund.

Can I Beat the Stock Market?

I am actually not trying to “beat the market” with my retirement portfolio…I am trying to match it. I do have alternative indexes in my retirement portfolio to help possibly beat the market, e.g. Small Cap Value, REITs, International, and Emerging Markets. Through lots of reading and research on my part, I’ve found that a number of these assets classes “zig” when the market “zags”.

With that said, if I can beat the market I will absolutely take it (obviously)! In 2016 my retirement portfolio returned 13.01% versus 9.54% from the S&P 500. In addition to the S&P 500, I like to measure my portfolio performance against Target Date Retirement Funds. I specifically like to use the Vanguard Target Retirement 2040 Fund (VFORX) because that is what I used to invest in before I went to all index funds. But if I can’t beat the Vanguard 2040 fund, then why not simply invest in it (one fund) versus the 10+ mutual funds I am in now? Well in 2016 the Vanguard 2040 fund was up only 8.73%. So it under performed the market (S&P 500) by nearly 1%, and I personally beat it by nearly 5%. So that tells me I am on the right track with my well diversified portfolio.

And last year in 2017, my retirement portfolio returned 17.04% compared to 19.42% from the S&P 500. In 2017 the Vanguard 2040 (VFORX) fund was up 20.71%. So the Vanguard 2040 target date retirement fund not only beat me by more than 3%, but it also beat the market by more than 1%. That is definitely something worth watching for me. With that said, I am a long-term, buy-and-hold investor with the big picture in mind. So mini annual analyses like this won’t paralyze me and force me into a rash decision. In the last 10 years my retirement account has returned a 11.7% rate of return, whereas the 2040 target date fund has only returned 7.23% over the last 10 years.

Millennial Personal Finance Blog

My goal with this Millennial personal finance blog is to show all Millennial’s that you have the power to take control of your personal finances through self-education and self-development on money and finances, and by striving to become financially literate. That is what I have been doing for years now, focusing on becoming an expert in financial literacy, so I can one day become financially independent. I’m trying to prove to Millennial’s that we can all do this and thrive with money. We Millennial’s have the greatest resource on our side to become financially independent and build wealth…time! Save, invest, and let compound interest do the rest.

Follow my blog as I highlight relevant personal finance and retirement topics pertaining to us Millennial’s. You can also join my journey as I track the true cost to raise a child these days. Most of my research shows that on average it costs $14,000 per year to raise a child, which equates to roughly $250,000 to raise a child from birth through high school (the cost of college is not included in this $250,000). I am trying to defy that price tag and show that a Millennial family can raise a child on well less than $250,000…or I will come to the sad realization that this number is dead on. Time will tell.

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