Market Update: Wednesday, September 14, 2016


  • Stocks and oil ponder direction. Major U.S. indexes opened slightly higher this morning after yesterday’s sell-off, which was triggered in part by a 3% drop in WTI crude oil. As a result, energy shares (-2.9%) led the S&P 500 decline, while technology (-0.6%) showed relative strength. Overseas, both the Shanghai Composite and Nikkei Index lost 0.7%; the Bank of Japan meets next week, and is expected to take steps to steepen its yield curve. European shares have rebounded modestly in afternoon trade as markets digest mixed Eurozone July industrial production and several Consumer Price Index (CPI) country reports. Meanwhile, oil ($44.40/barrel) is trading lower despite a surprise drop in inventory builds, COMEX gold ($1327/oz.) continues to trade in a tight range, and the yield on the 10-year note has slipped 0.04% from yesterday’s close at 1.73%.


  • The volatility continues. The S&P 500 fell another 1.5% yesterday, on the heels of a 1.5% jump on Monday and the 2.5% drop on Friday. Remember, the S&P 500 went 43 straight days without a 1% move (up or down), now it is working on three straight. The last time it moved 1% for three straight days was a six consecutive day streak at the end of June. The all-time record was an incredible 23 straight days in 1931. What also is interesting about the recent three days is the 1% moves have alternated. The last time four consecutive days alternated between 1% moves was late January 2016 and October 2011 before that. It hasn’t made it to five straight for more than 80 years.
  • Get ready for some September volatility? As has been well documented, September is historically the weakest month going back to 1950, at -0.5% on average and lower 56% of the time. Here’s what is interesting about this, the first half of September tends to be strong, while the second half is weak. This has been more pronounced recently, as over the past 20 years, September has actually been up +1.6% on average as of the 16th of the month, but then steadily moves lower the remainder of the month. Also, the next five weeks tend to see more big daily moves than any other time of the year. Today on the LPL Research blog we will take a closer look at this phenomenon.



  • UK: Jobless Claims (Aug)
  • European Commission President Jean Claude Juncker Delivers “State of the Union” Address



  • Household Net Worth/Flow of Funds (Q2)
  • EU Leaders Summit Meeting
  • Russia: Central Bank Meeting (Rate Cut Expected)

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Past performance is no guarantee of future results.

The economic forecasts set forth in the presentation may not develop as predicted.

The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

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