Market Update: Friday, June 29, 2018

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Daily Insights

  • Welcome to the third quarter. Historically the third quarter can be tricky for stocks, but especially so during a midterm year. In fact, going back to 1896 and the start of the Dow, this is the second worst quarter of the four-year presidential cycle. Could we be in for trouble this time around? We address this important question today on the LPL Research blog.

  • Stressed out? The Federal Reserve Bank’s (Fed) annual stress test revealed that one out of 35 banks failed, while putting conditions on three other banks that passed the test. This was the second part of the Fed’s stress test and it focuses on how the bank’s plan for capital, such as dividend payouts and investments, would stand up against harsh scenarios. Financials have been in a tough spot recently, falling a record 13 consecutive days before bouncing yesterday. It is worth noting financials lost 6% during this losing streak, significantly less than it lost during other losing streaks. We continue to like the group and will explain why next Monday on the LPL Research blog.

  • President Trump reportedly wants to withdraw U.S. from WTO. Sources out of Washington have reported that President Trump has told top advisors that he wants to withdraw the United States from the World Trade Organization (WTO). However, the move would require numerous legal hurdles, and Treasury Secretary Steve Mnuchin walked the comments back saying, ” This is an exaggeration” in a recent interview. For our thoughts on navigating tensions surrounding trade, check out this week’s Weekly Market Commentary.

 

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Click Here for our detailed Weekly Economic Calendar

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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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in this material may not develop as predicted.

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