- New LPL Market Signals Podcast. In case you missed it, listen to Senior Market Strategist Ryan Detrick and special guest Equity Strategist and Portfolio Manger Jeffrey Buchbinder talk about pullbacks in emerging markets, the manufacturing sector’s continued strength, and other factors affecting the current economic cycle. Please join our discussion on social via #LPLMarketSignals.
- Small business optimism at record high. The NFIB Small Business Optimism gauge rose to a record-high 108.8 last month. The percentage of surveyed firms that plan to increase capital expenditures rose to its highest level since 2007, while firms expecting to invest in inventory climbed to the highest level since 2005. Small business sentiment has gradually improved amid a $350 billion windfall from fiscal stimulus implemented earlier this year. Increased business spending could fuel strong economic growth through the end of this year as capital expenditures generally improve productivity, which boosts output.
- Watching trade headlines. Chinese stocks dropped for a second straight day, hitting their lowest level since January 2016 after the World Trade Organization announced that China has asked to implement an additional $8.4 billion in retaliatory trade measures against the U.S., in response to the U.S.’ failure to comply with anti-dumping measures. While the value of the proposed sanctions is modest, the move adds to worries that the U.S. and China won’t reach a trade resolution any time soon. Investors are also anticipating a $200 billion round of tariffs on Chinese imports (announced last month) to be implemented in the coming days, while President Trump hinted to an additional $267 billion in tariffs last week. If these tariffs are implemented along with those already in place, the amount of taxed imports would exceed the $506 billion in Chinese imports the U.S. received last year.
- Wage growth jumpstarts longer-term yields. On Friday, the 10-year Treasury yield jumped the most on a jobs report day since January 2017 after August data showed average hourly earnings grew at their fastest pace of the economic cycle. Accelerating wage growth has re-ignited inflation expectations, and as we’ll show later today on the LPL Research blog, it could be the catalyst for consistently higher long-term rates.
- PPI Report (MoM, Aug)
- Federal Reserve’s Beige Book (Aug)
- Eurozone Industrial Production (Jul)
- Eurozone Employment Report (Q2)
- Japan PPI Report (Aug)
- CPI Report (MoM, Aug)
- Initial Jobless Claims (Sept. 8)
- China Unemployment Rate (Aug)
- China Retail Sales (Aug)
- China Industrial Production (Aug)
- Turkey Central Bank Meeting (Sep)
- Retail Sales (MoM, Aug)
- Import Price Indexes (MoM, Aug)
- Export Price Indexes (MoM, Aug)
- Industrial Production (MoM, Aug)
- Eurozone Trade Balance (Jul)
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.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
All company names noted herein are for educational purposes only and not an indication of trading intent or a solitication of their products or services. LPL Financial doesn’t provide research on individual equities.
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.
The investment products sold through LPL Financial are not insured deposits and are not FDIC/NCUA insured. These products are not Bank/Credit Union obligations and are not endorsed, recommended or guaranteed by any Bank/Credit Union or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.
Index data obtained via FactSet
For Public Use (Exp. 9/19)