Market Update: Thursday, June 28, 2018

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Daily Insights

  • LPL Research Senior Market Strategist on CNBC talking markets. In case you missed it, see what Ryan Detrick had to say about the recent strength in small cap stocks and our expectations for the second half of the year.

  • Chinese stocks remain under pressure. Having already entered bear market territory, Chinese stocks fell again overnight as the Shanghai Composite lost 0.9%. Currency weakness has been an issue for China and emerging Asia (India’s rupee hit an all-time low versus the U.S. dollar overnight), that these countries may have to address should trade tensions ratchet higher. The Trump Administration’s decision to use existing channels to restrict China’s investments rather than a more harsh approach helped sentiment briefly Wednesday, but afternoon losses and additional weakness this morning clearly indicate markets remain concerned about potential escalation.

  • Round 2 of bank stress test results due out after the close. After a record 13 consecutive down sessions, the financials sector needs something for investors to cheer about. Today’s dividend and share buyback approvals may help, though upside surprises may be limited given a couple close calls in round one last week. The sector continues to struggle with a flattening yield curve on top of broader trade concerns, though the sector remains one of our favorites.

  • Jobless claims above expectations. New applications for unemployment benefits ticked higher last week, coming in at 227,000 vs. expectations of 220,000 and snapping a four-week string of declines. Last week’s uptick pushed the less volatile four-week moving average of claims up 1,000 to 222,000, but the data are certainly no cause for concern as the labor market remains at or near full employment with the jobless rate near 18-year lows.

 

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Click Here for our detailed Weekly Economic Calendar

Thursday

  • GDP Annualized (Q1)
  • Germany: CPI (Jun)
  • Italy: CPI (Jun)
  • Eurozone: Consumer Confidence (Jun)
  • Japan: Tokyo CPI (Jun)
  • Japan: Industrial Production (May)

Friday

  • Personal Income (May)
  • Personal Spending (May)
  • France: CPI (Jun)
  • UK: GDP (Q1)
  • Eurozone: CPI (Jun)
  • Japan: Consumer Confidence (Jun)
  • China: Mfg. & Non-Mfg. PMI (Jun)

 

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