Market Update: Wednesday, December 27, 2017

MarketUpdate_header

Market Recap

  • Stocks edged lower on light volume following Christmas holiday. S&P 500 Index 0.1%, Dow -0.03%, Nasdaq -0.3%.
  • Energy stocks (+0.8%) outperformed, while the technology sector (-0.7%) dragged the S&P, Nasdaq lower.
  • Treasuries gained ground slightly following biggest weekly loss since mid-September. 10-year yield -2 basis points (-0.02%) to 2.47%.
  • In economic news, U.S. retail sales in the holiday period reportedly rose at their highest pace since 2011.

Overnight & This Morning

  • U.S. equities little changed in early trading, though technology sector remains under pressure.
  • Stocks in Asia finished mixed; Nikkei and Hang Seng +0.1%, Shanghai Composite -0.9%.
  • European stocks are near flat following market closure Tuesday for Boxing Day, STOXX Europe 600 -0.03%.
  • Commodities: WTI crude oil ($59.48/bbl.) is lower by 0.8%, precious metals outperform industrial as COMEX gold +0.1%, copper -0.3%.
  • Today’s economic calendar includes December Consumer Confidence and Pending Home Sales for November.

MacroView_header

Macro Notes

  • Clarida, Lindsey reportedly being considered for Fed vice chair. The WSJ reported today that the White House has recently interviewed two economists for the Federal Reserve’s (Fed) vice chair position, both of whom served in the George W. Bush administration. The two are Richard Clarida (a Columbia professor and managing director at Pimco) and Lawrence Lindsey (who currently runs and economic advisory firm in Washington). It adds that the candidates would satisfy the administration’s desire to select an economist with a strong grounding in monetary policy. It is unclear at this point whether there are additional candidates under consideration, or when a final candidate for the position may be named. (Source: FactSet)

MonitoringWeek_header

Click Here for our detailed Weekly Economic Calendar

Wednesday

  • Consumer Confidence (Dec)
  • Pending Home Sales (Nov)
  • Germany: Retail Sales (Nov)
  • BOJ: Summary of Opinions at Dec 20-21 Meeting
  • BOP: Current Account Balance (Q3)
  • BOJ: Outright Bond Purchase
  • Japan: Retail Sales (Nov)
  • Japan: Industrial Production (Nov)
  • Japan: Vehicle Production (Nov)

Thursday

Friday

  • Germany: CPI (Dec)
  • Eurozone: M3 Money Supply (Nov)
  • Italy: PPI (Nov)
  • Italy: Italian Nat’l Institute of Statistics Monthly Economic Note
  • Russia: GDP (Q3)

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.

Stock investing involves risk including loss of principal.

Investing in foreign and emerging markets securities involves special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks.

Because of its narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.

Commodity-linked investments may be more volatile and less liquid than the underlying instruments or measures, and their value may be affected by the performance of the overall commodities baskets as well as weather, disease, and regulatory developments.

Government bonds and Treasury bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.

Investing in foreign and emerging markets debt securities involves special additional risks. These risks include, but are not limited to, currency risk, geopolitical and regulatory risk, and risk associated with varying settlement standards.

Currency risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

Not FDIC/NCUA Insured | Not Bank/Credit Union Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit

Securities and Advisory services offered through LPL Financial LLC, a Registered Investment Advisor

Member FINRA/SIPC
Tracking # 1-681373