NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Weekly Market Recap U.S. | January 1, 2018

The week in review WEEKLY DATA CENTER Index Returns (%) Index Characteristics
Equities Level 1 week QTD YTD 1 year 3-yr. Cum. NTM P/E P/B Div. Yld. Mkt. Cap (bn)
• Case-Shiller HPI +6.4% y/y S&P 500 2674 -0.33 6.64 21.83 21.27 36.21 18.21 3.30 1.88 49.04
• Consumer confidence at 122.1 Dow Jones 30 24719 -0.14 10.96 28.11 27.74 47.77 18.18 4.02 1.94 N/A
• Jobless claims at 245K Russell 2000 3816 -0.42 3.34 14.65 14.14 31.38 24.30 2.19 1.51 1.27
Russell 1000 Growth 894.18 -0.40 7.86 30.21 29.33 45.13 21.15 6.68 1.60 24.41
The week ahead Russell 1000 Value 755.00 -0.18 5.33 13.66 13.42 26.45 16.23 2.12 2.65 33.21
MSCI EAFE 2051 0.95 4.27 25.62 26.27 25.70 14.95 1.74 2.94 21.72
• Markit Mfg. PMI MSCI EM 1158 1.71 7.50 37.75 38.37 30.97 12.51 1.75 2.21 15.52
• ISM Mfg. & Non-mfg. PMI NASDAQ 6903 -0.80 6.55 29.64 28.48 48.74 22.47 4.18 1.03 4.69
• Light vehicle sales
• FOMC minutes Fixed Income Yield 1 week QTD YTD 1 year 3-yr. Cum. Levels
• ADP/BLS employment situation U.S. Aggregate 2.72 0.51 0.39 3.54 3.80 7.04 Currencies 12/29/17 12/30/16 12/29/16
• International trade balance U.S. Corporates 3.26 0.72 1.17 6.42 6.71 12.34 $ per € 1.20 1.05 1.05
• Jobless claims Municipals (10yr) 2.26 0.63 0.52 5.83 5.90 9.92 $ per £ 1.35 1.24 1.22
High Yield 6.16 0.21 0.47 7.50 7.52 20.30 ¥ per $ 112.65 116.64 116.45
Thought of the week Levels (%) Levels
Key Rates 12/29/17 12/22/17 12/29/17 12/30/16 12/29/16 12/29/14 Commodities 12/29/17 12/30/16 12/29/16
Politics dominated the headlines in 2017, 2-yr U.S. Treasuries 1.89 1.91 1.89 1.20 1.22 0.72 Oil (WTI) 60.36 53.75 53.80
but an improvement in the breadth and 10-yr U.S. Treasuries 2.40 2.48 2.40 2.45 2.49 2.22 Gasoline 2.47 2.31 2.31
strength of the global expansion provided 30-yr U.S. Treasuries 2.74 2.83 2.74 3.06 3.08 2.78 Natural Gas 3.58 3.71 3.71
support for risk assets to move higher. 10-yr German Bund 0.43 0.42 0.43 0.20 0.17 0.54 Gold 1291 1146 1146
International investments did particularly 3-mo. LIBOR 1.69 1.69 1.69 1.00 1.00 0.26 Silver 16.87 16.24 16.06
well on the back of solid economic activity 3-mo. EURIBOR -0.33 -0.33 -0.33 -0.32 -0.32 0.08 Copper 7157 5501 5514
abroad, with both emerging and developed 6-mo. CD rate 0.48 0.46 0.48 0.34 0.34 0.38 Corn 3.19 3.33 3.29
market equities outside of the U.S. 30-yr fixed mortgage 4.16 4.16 4.16 4.39 4.45 4.04 BBG Idx 179.96 176.94 177.25
outperforming the S&P 500 in dollar terms Prime Rate 4.50 4.50 4.50 3.75 3.75 3.25
for the first time since 2012. Within U.S.
equities, large caps outperformed small
caps on the back of healthier global growth CHART OF THE WEEK STYLE RETURNS S&P 500 SECTOR RETURNS
and a weaker U.S. dollar. In fixed income,

1.5
Risk assets performed well in 2017 V B G 2
global high yield outperformed the broad

Health Care

Technology
Consumer

Financials
Total return, U.S. dollar

S&P 500

Telecom
U.S. bond market for the fourth consecutive

0.4
L -0.2 -0.3 -0.4 1

Discr.
0.2

0.2

0.2
year, while cash and commodities were 40% 37.8%

0.0
1 week

1 week
once again the worst performers. One of 0
35% M 0.1 0.0 -0.1
the most remarkable things about 2017 was

Real Estate

Utilities

Industrials

Materials

Energy
Consumer
Staples
-0.3

-0.4

-0.4

-0.4
the lack of volatility; the largest intra-year

-0.5
30% -1

-1.0
decline for the S&P 500 was a mere 3%, 25.6%
S -0.5 -0.4 -0.3
despite declines averaging over 14% during 25% 21.8% -2
the past 37 years. 2018 may be a more

38.8
difficult and volatile market for investors to 20% V B G 50

23.8

23.0

22.2

21.8
22.1

21.0
14.6%
navigate, but with economic momentum

Telecom
13.5

10.8
12.1

Energy
15% 25
expected to continue, providing a further 10.4% L 13.7 21.8 30.2
8.7%
lift to profits around the world, we maintain 10% 0
the view that clients should continue

Technology

Materials
Consumer
Discr.
Financials

Health Care

S&P 500

Industrials
Consumer
Staples
Utilities

Real Estate

-1.0

-1.3
3.5% M 13.3 18.5 25.3

YTD

YTD
leaning into risk within the context of a 5% 1.7% 0.8% -25
balanced and diversified portfolio. 0%
EM DM S&P 500 Small High REITs Fixed Comdty. Cash
S 7.8 14.6 22.2 -50
equity equity cap yield income

Please see important disclosure on next page.

 NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Weekly Market Recap U.S. | January 1, 2018

Chart of the Week: Source: Barclays, Bloomberg Finance L.P., FactSet, MSCI, NAREIT, Russell, Standard & Poor's, J.P. Russell 3000), Russell 2000 Growth Index (Measures the performance of those Russell 2000 companies with higher price-
Morgan Asset Management. to-book ratios and higher forecasted growth values).
Thought of the week: Source: Barclays, Bloomberg Finance L.P., FactSet, MSCI, NAREIT, Russell, Standard & Poor's, J.P. Past performance does not guarantee future results.
Morgan Asset Management. Diversification does not guarantee investment returns and does not eliminate the risk of loss.
Abbreviations: Cons. Sent.: University of Michigan Consumer Sentiment Index; CPI: Consumer Price Index; EIA: Energy Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of
Information Agency; FHFA HPI: - Federal Housing Finance Authority House Price Index; FOMC: Federal Open Market financial market trends, which are based on current market conditions. We believe the information provided here is
Committee; GDP: gross domestic product; HPI: Home Price Index; HMI: Housing Market Index; ISM Mfg. Index: Institute for reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the
Supply Management Manufacturing Index; PCE: Personal consumption expenditures; Philly Fed Survey: Philadelphia Fed purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors.
Business Outlook Survey; PMI: Purchasing Managers' Manufacturing Index; PPI: Producer Price Index; SAAR: Seasonally This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied
Adjusted Annual Rate on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns
Equity Price Levels and Returns: All returns represent total return for stated period. Index: S&P 500; provided by: a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied
Standard & Poor’s. Index: Dow Jones Industrial 30 (The Dow Jones is a price-weighted index composing of 30 widely- upon as advice or interpreted as a recommendation.
traded blue chip stocks.) ; provided by: S&P Dow Jones Indices LLC. Index: Russell 2000; provided by: Russell The price of equity securities may rise or fall because of changes in the broad market or changes in a company's financial
Investments. Index: Russell 1000 Growth; provided by: Russell Investments. Index: Russell 1000 Value; provided by: condition, sometimes rapidly or unpredictably. International investing involves a greater degree of risk and increased
Russell Investments. Index: MSCI – EAFE; provided by: MSCI – gross official pricing. Index: MSCI – EM; provided by: MSCI – volatility. There is no guarantee that companies that can issue dividends will declare, continue to pay, or increase
gross official pricing. Index: Nasdaq Composite; provided by: NASDAQ OMX Group. dividends. Investments in commodities may have greater volatility than investments in traditional securities, particularly
MSCI EAFE is a Morgan Stanley Capital International Index that is designed to measure the performance of the developed if the instruments involve leverage.
stock markets of Europe, Australasia, and the Far East. JPMorgan Distribution Services, Inc., member of FINRA/SIPC.
Bond Returns: All returns represent total return. Index: Barclays US Aggregate; provided by: Barclays Capital. Index: J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co.
Barclays Investment Grade Credit; provided by: Barclays Capital. Index: Barclays Municipal Bond 10 Yr; provided by: Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research &
Barclays Capital. Index: Barclays Capital High Yield Index; provided by: Barclays Capital. Management Incorporated and J.P. Morgan Alternative Asset Management, Inc. and JPMorgan Asset Management
Key Interest Rates: 2 Year Treasury, FactSet; 10 Year Treasury, FactSet; 30 Year Treasury, FactSet; 10 Year German Bund, (Canada) Inc.
FactSet. 3 Month LIBOR, British Bankers’ Association; 3 Month EURIBOR, European Banking Federation; 6 Month CD, ©JPMorgan Chase & Co., January 2018.
Federal Reserve; 30 Year Mortgage, Mortgage Bankers Association (MBA); Prime Rate: Federal Reserve.
Commodities: Gold, FactSet; Crude Oil (WTI), FactSet; Gasoline, FactSet; Natural Gas, FactSet; Silver, FactSet; Copper, Unless otherwise stated, all data is as of January 1, 2018 or as of most recently available.
FactSet; Corn, FactSet. Bloomberg Commodity Index (BBG Idx), Bloomberg Finance L.P.
Currency: Dollar per Pound, FactSet; Dollar per Euro, FactSet; Yen per Dollar, FactSet.
S&P Index Characteristics: Dividend yield provided by FactSet Pricing database. Fwd. P/E is a bottom-up weighted
harmonic average using First Call Mean estimates for the "Next 12 Months" (NTM) period. Market cap is a bottom-up
weighted average based on share information from Compustat and price information from FactSet's Pricing database as
provided by Standard & Poor's.
MSCI Index Characteristics: Dividend yield provided by FactSet Pricing database. Fwd. P/E is a bottom-up weighted
harmonic average for the "Next 12 Months" (NTM) period. Market cap is a bottom- up weighted average based on share
information from MSCI and Price information from FactSet's Pricing database as provided by MSCI.
Russell 1000 Value Index, Russell 1000 Growth Index, and Russell 2000 Index Characteristics: Trailing P/E is provided
directly by Russell. Fwd. P/E is a bottom-up weighted harmonic average using First Call Mean estimates for the "Next 12
Months" (NTM) period. Market cap is a bottom-up weighted average based on share information from Compustat and
price information from FactSet's Pricing database as provided by Russell.
Sector Returns: Sectors are based on the GICS methodology. Return data are calculated by FactSet using constituents
and weights as provided by Standard & Poor’s. Returns are cumulative total return for stated period, including
reinvestment of dividends.
Style Returns: Style box returns based on Russell Indexes with the exception of the Large-Cap Blend box, which reflects
the S&P 500 Index. All values are cumulative total return for stated period including the reinvestment of dividends. The
Index used from L to R, top to bottom are: Russell 1000 Value Index (Measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth values), S&P 500 Index (Index represents the
500 Large Cap portion of the stock market, and is comprised of 500 stocks as selected by the S&P Index Committee),
Russell 1000 Growth Index (Measures the performance of those Russell 1000 companies with higher price-to-book ratios
and higher forecasted growth values), Russell Mid Cap Value Index (Measures the performance of those Russell Mid Cap
companies with lower price-to-book ratios and lower forecasted growth values), Russell Mid Cap Index (The Russell
Midcap Index includes the smallest 800 securities in the Russell 1000), Russell Mid Cap Growth Index (Measures the
performance of those Russell Mid Cap companies with higher price-to-book ratios and higher forecasted growth values),
Russell 2000 Value Index (Measures the performance of those Russell 2000 companies with lower price-to-book ratios
and lower forecasted growth values), Russell 2000 Index (The Russell 2000 includes the smallest 2000 securities in the