Weekly Market Monitor

WEEKLY MARKET MONITOR

ACWI -2.5% S&P -2.1% EAFE -2.5% EM -5.1% 10-Year Treasury 1.51%

January 31, 2020

Global Investing Headlines

? The Federal Reserve held interest rates steady, but made a small upward tweak in the Interest on Excess Reserves. ? The United Kingdom officially left the European Union on January 31, beginning a transition ending on December 31. ? Fourth quarter Eurozone gross domestic product rose 0.1% as France and Italy unexpectedly contracted. ? President Trump signed the United States-Mexico-Canada Agreement into law, which had bipartisan support.

Review of Global Markets

? Coronavirus fears knocked global stocks lower for the second consecutive week. Emerging markets fell sharply on the week, turning in their worst weekly performance since February 2018. Likewise, shares in the US declined for the second consecutive week. Stocks in Europe stumbled, while shares in the United Kingdom posted their largest weekly decline since October 2019. Stocks in Japan tripped, posting their worst weekly slide since August 2019.

? US stocks fell, extending their weekly losing streak to two. Just two of the 11 S&P 500 sectors posted gains for the week. Utilities topped the field for the third consecutive week. Consumer discretionary and staples rounded out the top three sectors. Energy, materials and health care rounded out the laggards on the week.

? Bond yields fell across the board on the week. The 10-year US Treasury yield finished the week at 1.51%. As a result, US core, municipal and investment grade corporate bonds finished the week in positive territory. On the other hand, high yield corporate bonds fell on the week as credit spreads continued to widen, offsetting gains from lower yields.

? The US Dollar Index declined on the week, snapping a three-week winning streak. ? Commodities tumbled for a fourth week in a row, their longest losing streak since November 2019. Agriculture ebbed

on broad-based weakness. Meanwhile, precious metals eked out gains due to strength in gold.

Economic News

? The US economy grew 2.1% in the fourth quarter, maintaining the third quarter pace and matching expectations. There was a downshift in consumer spending and offsetting swings from net exports and business inventories.

? New home sales fell 0.4% in December to 694,000 annualized units, spelling the third straight monthly decline. ? New durable goods orders rose 2.4% in December due to a massive 168% surge in military aircraft orders. ? The S&P/CS 20-City Home Price Index rose 2.55% year-over-year in December, the fastest pace in nine months. ? Personal income rose 0.2% in December, missing the expectation of 0.3%, while personal spending rose 0.3%.

Chart of the Week: History of Viral Outbreaks

Looking back at history, global viral outbreaks have tended to cause short-term market disruptions but have generally been less of an issue over longer periods of time.

S&P 500 Price & Global Viral Outbreaks

3600

SARS Avian Flu Swine Flu Ebola ('13 - '16)

('02-'03) ('06) ('09 - '10) & Zika ('15 - '16)

1

0.8

0.6 1200

0.4

0.2

400

0

'99 '00 '02 '03 '05 '06 '08 '09 '11 '12 '14 '15 '17 '18 '20

Data Source: SunTrust IAG, Bloomberg

Economic Calendar: Week Ahead

Mon Feb 3

ISM Manufacturing Index Monthly US Vehicle Sales

Tue Feb 4

Factory Orders

Wed Feb 5

ADP Employment Report ISM Services Index

Thu Feb 6

Initial Jobless Claims Nonfarm Productivity 4Q

Fri Feb 7

Nonfarm Payrolls Unemployment Rate

Prior Consensus

47.8 16.70M

48.5 16.80M

-0.7%

1.1%

202K 54.9

216K -0.2%

145K 3.5%

160K 55.1

215K 1.5%

160K 3.5%

Data Source: Bloomberg

Securities and Insurance Products and Services: Are Not FDIC or any other Government Agency Insured | Are Not Bank Guaranteed | May Lose Value

Past performance is not indicative of future results. Please see Important Disclosures for additional information.

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WEEKLY MARKET MONITOR

Performance Summary

Index % Total Return MSCI ACWI (net) MSCI EAFE (net)

Week -2.54 -2.50

MTD -1.10 -2.09

MSCI Emerging Markets (net)

-5.09

-4.66

Dow Jones Industrials S&P 500 NASDAQ Composite FTSE NAREIT All Equity REITs Index Bloomberg Commodity Index Bloomberg Barclays Aggregate BofA Merrill Lynch US High Yield

-2.52 -2.10 -1.76 -1.66 -3.18 0.62 -0.33

-0.89 -0.04 1.99 1.27 -7.36 1.92 0.00

Bloomberg Barclays Municipal Bond Blend 1-15 Year ICE BofAML Global Government x the US (USD Unhedged) ICE BofAML Global Government x the US (USD Hedged) JP Morgan GBI-EM Global Diversified Composite

0.27 1.43 0.79 -1.15

1.53 1.09 1.85 -1.29

Hedge Fund Performance (%) HFRX Global Hedge Fund Index HFRX Equity Hedge Index HFRX Macro

Week* -0.44 -0.65 -0.96

MTD* 0.54 -0.02 1.05

HFRX Absolute Return Index

-0.04

0.08

* Through 1/30/20

U.S. Style % Total Returns (Russell Indexes)

QTD -1.10 -2.09 -4.66 -0.89 -0.04 1.99 1.27 -7.36 1.92 0.00

1.53

1.09

1.85

-1.29

QTD* 0.54 -0.02 1.05 0.08

Week

YTD

Value Core Growth

Value Core Growth

-2.32 -2.05 -1.81 Large -2.15 0.11 2.24

-2.37 -2.42 -2.50 Mid -1.95 -0.80 0.94

-3.26 -2.89 -2.54 Small -5.39 -3.21 -1.10

YTD -1.10 -2.09 -4.66 -0.89 -0.04 1.99 1.27 -7.36 1.92 0.00

1.53

1.09

1.85

-1.29

YTD* 0.54 -0.02 1.05 0.08

1 Yr Rates (%)

15.97 12.05

3.80

Fed Funds Target Libor, 3-Month

15.72 T-Bill, 3-Month

21.59 2-Year Treasury

25.56 5-Year Treasury

16.70 -5.36 9.61 9.35

7.13

10-Year Treasury

30-Year Treasury

Bloomberg Barclays Aggregate (YTW) Bloomberg Barclays Municipal Bond Blend 1-15 Year

BofA Merrill Lynch US High Yield

3.91 Currencies

8.14 Euro ($/)

Yen (?/$) 6.19 Pound ($/?)

1 Yr* Commodities

6.91 Crude Oil (WTI)

6.49 7.97

Gold

3.17 Volatility

CBOE VIX

1/31/20 1.75 1.75 1.53 1.32 1.31 1.51 2.01 2.02

1.24

5.61 1/31/20

1.11 108.39

1.32 1/31/20

51.56 1,588 1/31/20 18.84

12/31/19 1.75 1.90 1.54 1.57 1.69 1.91 2.38 2.31

1.53

5.41 12/31/19

1.12 108.68

1.32 12/31/19

61.06 1,523 12/31/19 13.78

9/30/19 2.00 2.08 1.82 1.61 1.55 1.67 2.12 2.26

1.65

5.87 9/30/19

1.09 108.08

1.23 9/30/19

54.07 1,473 9/30/19 16.24

6/28/19 2.50 2.31 2.11 1.73 1.75 1.99 2.52 2.49

1.75

6.05 6/28/19

1.14 107.74

1.27 6/28/19

58.47 1,414 6/28/19 15.08

3/29/19 2.50 2.59 2.39 2.26 2.24 2.41 2.82 2.93

2.04

6.40 3/29/19

1.12 110.68

1.30 3/29/19

60.14 1,299 3/29/19 13.71

0.9 -3.0

Comm Services

0.2 0.6

Cons Disc

S&P 500 Sector %Total Returns

4.0 0.4

Week YTD 6.7

1.4 0.9

-0.8

Cons Staples

-1.3-2.6 -5.6

-11.1

Energy Financials

-3.2-2.7

Health Care

-2.9-0.4 -2.2

Industrials Info Tech

-3.5

-1.8

-6.2

Materials Real Estate

Utilities

Important Disclosures: All information is as of title date unless otherwise noted. This document was prepared for clients of SunTrust Bank for informational purposes only. This material may not be suitable for all investors and may not be redistributed in whole or part. Neither SunTrust Bank, nor any affiliates make any representation or warranties as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable, but are not guaranteed. Comments and general market related projections are based on information available at the time of writing and believed to be accurate; are for informational purposes only, are not intended as individual or specific advice, may not represent the opinions of the entire firm and may not be relied upon for future investing. The views expressed may change at any time. The information provided in this report should not be considered a recommendation to purchase or sell any financial instrument, product or service sponsored or provided by SunTrust Bank or its affiliates or agents. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decisions. Past returns are not indicative of future results. An investment cannot be made into an index. ?2019 Truist Financial Corporation. SunTrust?, the SunTrust logo, and Truist are service marks of Truist Financial Corporation. All rights reserved.

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WEEKLY MARKET MONITOR

Index Definitions

Commonly used acronyms: SAAR = seasonally adjusted annual rate; MoM = month-over-month change; QoQ = quarter-over-quarter change; YoY = Year-over-year change; K = thousands; M = millions.

S&P 500 Index is comprised of 500 widely-held securities considered to be representative of the stock market in general.

The CBOE Volatility Index? (VIX?) is a measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.

MSCI ACWI Index (MSCI All Country World) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 45 country indices comprising 24 developed and 21 emerging market country indices.

MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.

MSCI EM Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

Bloomberg Barclays Global Aggregate Index is an index of investment grade debt including treasury, government-related, corporate and securitized debt, from 24 local currency benchmarks.

Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

MSCI information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an "as is" basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the "MSCI Parties") expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.

It is not possible to invest directly in an index.

SunTrust Private Wealth Management is a marketing name used by Truist Financial Corporation and the following affiliates: Banking products and services, including loans and deposit accounts, are provided by SunTrust Bank and Branch Banking and Trust Company, both now Truist Bank, Member FDIC. Trust and investment management services are provided by SunTrust Bank and Branch Banking and Trust Company, both now Truist Bank and SunTrust Delaware Trust Company. Securities, brokerage accounts and /or insurance (including annuities) are offered by SunTrust Investment Services, Inc., BB&T Securities, LLC, P.J. Robb Variable Corp. and Precept Advisory Group, LLC, which are SEC registered broker-dealers, members FINRA, SIPC, and a licensed insurance agency where applicable. Investment advisory services are offered by SunTrust Advisory Services, Inc., GFO Advisory Services, LLC, BB&T Securities, LLC, Sterling Capital Management, LLC, and BB&T Institutional Investment Advisors, Inc., each SEC registered investment advisers. BB&T Sterling Advisors, BB&T Investments and BB&T Scott & Stringfellow are divisions of BB&T Securities, LLC. Mutual fund products are advised by Sterling Capital Management, LLC.

?2019 Truist Financial Corporation. SunTrust?, the SunTrust logo, and Truist are service marks of Truist Financial Corporation. All rights reserved. CN2020-0079EXP12-2020

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