SOURCE: Russell Investments

Russell Investments

October 24, 2012 10:03 ET

The Russell 1000 Index® Technology Sector Was Down (-1.7%) Mid-Way (10-15 Thru 10-22) Through 3Q Earnings Season

SEATTLE, WA--(Marketwire - Oct 24, 2012) - After the first week of third quarter earnings announcements, October 15th through October 22nd, the Russell 1000® Index returned 0.4%, with the large-cap Russell 1000 Technology sector reflecting a -1.7% loss. Facebook Inc., and Yahoo! Inc. have reported earnings this week, and Apple Inc. will report third quarter earnings later in the week.

During the second quarter earnings announcements, July 16 through July 27, the Russell 1000 Index reflected 2.0% gains, while the large-cap Russell Technology sector rose by 2.6%. In the period between the two earnings seasons, July 30 through October 12, the Russell 1000 Index reflected 3.7% gains, while the Russell 1000 Technology sector posted 2.8% gains. At 17.1% (as of Oct. 19), Technology makes up the largest sector in the Russell 1000 Index, with Apple Inc. as the largest stock in the index by total company capitalization.

"After returning 13.7% YTD through October 22, the Russell 1000 Technology Sector suffered a -1.7% loss in the last week as earnings season began," said Stephen Wood, chief market strategist for Russell Investments. "This compares to a 15.9% gain in the Russell 1000 Index year-to-date through October 22, and a rise of 0.4% in the last week. We were looking for a difficult earnings season and we got one; as investors start to scrutinize top lines, security selection and multi-asset strategies will become more important."

The Russell 1000® Equal Weight Index, which weighs equally each sector and company within the Index, thereby reducing the exposure of any one sector, outperformed the Russell 1000® Index by posting a 0.8% gain from October 15 through October 22.

    YTD Returns (as of 10/22)   July 16 - July 27 Returns   July 30 - October 12 Returns   October 15 - October 22 Returns
Russell 1000® Index   15.9   2.0%   3.7%   0.4%
Russell 1000® Technology Sector   13.7   2.6%   2.8%   -1.7%
Russell 1000® Equal Weight Index   13.3   1.7%   4.1%   0.8%

Source: Russell Investments

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.

Opinions expressed by Mr. Wood reflect market performance and observations as of October 22, 2012 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.

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.

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.