SEATTLE, WA — (Marketwire) — 01/18/13 — The Russell 1000 Index Consumer Discretionary sector hit an all-time high price level of 1671.66 on Thursday, January 17th during a week of closely watched consumer-related economic reports including retail sales, weekly jobless claims and, on Friday, the University of Michigan-s Consumer Sentiment index.
Looking at the last four calendar quarters and all of 2012, the Consumer Discretionary sector outpaced the broad U.S. large-cap market as reflected by the Russell 1000 Index during each period. The sector-s 23.4% return for 2012 was the strongest annual return for the Russell 1000 Consumer Discretionary sector since 2009 (36.6%) and 2010 (25.3%), during the early stages of the economic recovery. As of January 17th, the sector has continued to outpace the broader index so far in 2013.
The Russell 1000 Index is also nearing its all-time price level high of 852.32, last reached on October 9th, 2007. The price level of the Index stood at 821.61 as of January 17th, less than four percent from its all-time high. The Russell 2000® Index of U.S. small cap stocks has also reached a new all-time price level high as of yesterday-s market close.*
“The Consumer Discretionary sector within the U.S. large cap Russell 1000 Index has continued to climb, indicating increased consumer optimism, and economic reports this week may support this trend,” said David Koenig, CFA, FRM, investment strategist for Russell Indexes. “Although recent U.S. payroll tax increases could put somewhat of a dent in consumer wallets, the economic recovery appears to have solidified for consumers. The economic trends have generally been constructive, and the strong performance of the Consumer Discretionary sector reflects these constructive trends.”
*The Russell 2000 Index reached its historical all-time high price value (without dividends reinvested) of 890.36 on January 17th, 2013 (Source: Bloomberg).
Opinions expressed by Mr. Koenig reflect market performance and observations as of January 17, 2013 and are subject to change at anytime based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.
Returns provided are US dollar-denominated.
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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.