Market Update: Wednesday, July 11, 2018

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Daily Insights

  • The LPL Research team proudly presents the Midyear Outlook 2018: The Plot Thickens, with investment insights and market guidance covering the rest of the year.

  • LPL Research believes the following three themes will be key to the markets over the balance of 2018:
      • Fiscal policy remains key to growth. Tax cuts, a more business-friendly regulatory environment, and increased government spending could likely support consumer spending, business investment and corporate profits–key drivers of LPL Research’s economic and stock forecasts.
      • Looking at market peaks in context. LPL Research believes we are starting to see peaks in several economic and market indicators, but given our current environment, that doesn’t mean a recession is necessarily around the corner.
      • Creating opportunity amid rising volatility. LPL Research expects greater market volatility may be ahead, but reminds investors that experiencing these ups and downs is a normal part of our market environment. Instead of fearing it, there is the potential to create opportunities by embracing it and strategizing accordingly.
      • Download the publication for more details on these themes and our investment recommendations.
  • President Trump in Brussels for NATO summit. NATO returned to the forefront with President Donald Trump stepping up his critique of NATO members as he tied shortfalls in allies’ agreed upon defense spending levels to U.S. trade deficits with the European Union. Consequently, the president suggested the U.S. is spending far more on NATO than any other country, though NATO benefits Europe far more than it does the U.S. The meeting comes just as the U.S. announced another $200 billion of tariffs on Chinese imports.

  • U.S. unveils tariffs on $200 billion more in Chinese goods. The ongoing trade tensions between the U.S. and China took another step forward this morning, as the White House announced 10% tariffs on an additional $200 billion in imports from China. The number exceeds the total value of goods that China imports from the United States, meaning additional measures may be taken by the Chinese in the expected retaliation. Nevertheless, we expect a resolution to the ongoing conflict, and our blog post from yesterday summarizes some of the key, client-facing resources we have produced on the subject.

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Click Here for our detailed Weekly Economic Calendar

Wednesday

  • PPI Final Demand MoM (Jun)
  • Wholesale Inventories (May)

Thursday

  • CPI MoM (Jun)
  • Monthly Budget Statement (Jun)
  • Germany: CPI (Jun)
  • France: CPI (Jun)
  • Eurozone: Industrial Production (May)

Friday

  • Import Price Index MoM (Jun)
  • Japan: Industrial Production (May)

 

IMPORTANT DISCLOSURES

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.

All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.

All performance referenced is historical and is no guarantee of future results.

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.

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