Market Update: Friday, July 13, 2018

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Daily Insights

  • Nasdaq new highs. Yesterday the Nasdaq closed at a new all-time high, while the S&P 500 Index closed at its highest level since February 1, 2018. We continue to be impressed with overall market breadth, as many stocks are participating in the move; evidenced by both the NDX (Nasdaq) and NYSE Advance/Decline (AD) lines marking new highs. Various other AD lines are very close to making new highs as well. We’ve found that AD lines tend to peak months (if not years) ahead of major indexes and this continued strength is another reason we remain bullish on equities over the rest of 2018.

  • Triskaidekaphobia? Today is the second Friday the 13th of 2018, so are you scared? Well, although we would never suggest investing based on single days of the year, it is worth noting that during the month of July the S&P 500 has been higher the past five times on this day. Additionally, Friday the 13th during the months of June, July, and August (so the summer months) tends to do better on average than the other nine months (going back to 1950). Avoid those black cats and mirrors today, but don’t be as concerned about stocks!

  • Another 20%? Second-quarter earnings season kicks off this week, and S&P 500 companies in aggregate are expected to report an eighth consecutive increase in quarterly profits. In fact, consensus estimates are calling for a 21% year-over-year increase for the quarter, setting up a potential second-straight quarter of earnings growth higher than 20%.  We expect several factors to drive this strong earnings growth, but could escalating trade tensions meaningfully impact second-quarter earnings results? Check out LPL Research blog now for our thoughts.

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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.

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