SOURCE: Russell Investments

Russell Investments

August 02, 2011 09:25 ET

Russell Indexes: Energy and Health Care Sectors in the Russell 3000 Index Lead All Sectors YTD Through July 29th, as Debt Ceiling Resolution Looms

8 of 9 Sectors Reflect Positive Returns YTD Through July 29 in the Russell 3000 Index

SEATTLE, WA--(Marketwire - Aug 2, 2011) - The energy sector in the U.S. broad-market Russell 3000® Index reflected the highest returns (12.1%) of all sectors year-to-date through July 29, followed by the health care sector (9.6%) and the consumer staples sector (8.0%). Conversely, in the Russell Global ex-U.S. Index, the health care sector gained the highest with a 12.2% return year-to-date, followed by the consumer staples sector (8.4%) and consumer discretionary sector (7.0%).

"While the U.S. markets are holding up reasonably well as compared to other equity markets worldwide, any debt ceiling resolution would have to gradually phase in spending reduction, as not to dramatically affect the tepid economy. While the final decisions as to what sectors will be directly affected by spending-cuts are still in super-committee, certain market sectors could become attractive as weighed against others," explained Dr. Stephen Wood, chief market strategist, Russell Investments.

"Sectors with long term prospects, such as energy that allows tangible investing in commodities, and health care that may offer some stability in a volatile market environment, are the ones we believe merit watching. While financials are currently feeling the ripple effect of what was believed to be an impending U.S. ratings downgrade, that sector also has potential to grow based on the final resolution."

Financial services (-3.9%) was the only sector in the Russell 3000 Index to reflect negative returns while technology (-4.1%) was the only sector reflecting negative returns in the Russell Global ex-U.S. Index year-to-date through July 29.

Steve Wood, chief market strategist at Russell Investments, is available for further market commentary. Please contact: Intermarket@russell.com

Russell Indexes YTD Returns (through July 29, 2011)
Russell Global ex-U.S. Index 2.9%
Russell 3000 Index 3.9%
Russell Index Sectors Russell 3000 Index YTD Returns (through July 29, 2011) Russell Global ex-U.S. YTD Returns (through July 29, 2011)
Consumer Discretionary 6.0% 7.0%
Consumer Staples 8.0% 8.4%
Energy 12.1% 5.0%
Financial Services -3.9% 0.4%
Health Care 9.6% 12.2%
Materials & Processing 1.8% 0.4%
Producer Durables 0.2% 1.3%
Technology 2.2% -4.1%
Utilities 5.6% 3.8%

The Russell Global Index includes more than 10,000 securities in 48 countries and covers 98% of the investable global market. All securities in the index are classified according to size, region, country and sector. Daily Returns for the main components are available here: http://www.russell.com/indexes/data/daily_total_returns_global.asp

Disclaimer: http://www.russell.com/indexes/about/index_alerts.asp#disclaimer