Market Update: Wednesday, September 26, 2018

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Daily Insights

  • LPL Market Signals Podcast. Listen to the latest Market Signals podcast, in which Chief Investment Strategist John Lynch and Senior Market Strategist Ryan Detrick discuss the potential effects of midterm elections, recent rate hikes, and other events on investors and the economy. Market Signals by LPL Financial is now available on iTunes, Google Play and Spotify. Please join our discussion on social via #LPLMarketSignals.

  • Fed day. The Federal Reserve’s (Fed’s) monetary policy meeting wraps up today with a policy decision, new economic projections, and a press conference from Fed Chair Jerome Powell. Markets think an interest rate hike is almost a foregone conclusion, so investors will focus more on implications for policy direction through the end of next year as the Fed tries to move toward a neutral policy stance without overtightening. Meetings with press conferences and updated projections are especially market-moving as investors have more context to scrutinize. Markets could also be more susceptible to volatility as U.S. stocks hover near records and the 10-year yield sits at its highest point since May. We take a closer look at the Fed meeting in this week’s Weekly Economic Commentary, “Fed Meeting Preview” .

  • Historically calm market. The S&P 500 Index has now gone 64 consecutive days without a 1% change either up or down, the fourth-longest streak since 1990.  On the LPL Research blog today, we highlight U.S. equities’ historic calm over the past few months.

  • Consumer confidence hits another high. U.S. consumers are the most confident in 18 years, according to Conference Board data released yesterday. Consumers have recently benefitted from the strongest personal income growth in three years, boosted by accelerating wage growth and fiscal stimulus. The health of the U.S. consumer is critical for output, as consumer spending accounts for about 70% of gross domestic product.

  • Housing price growth slows. Housing prices, represented by the S&P CoreLogic Case-Shiller 20-City Composite, rose 5.9% year over year in July, below consensus estimates for a 6.2% increase. Housing price growth has now slowed for four straight months, adding to evidence of cooling in an area of the economy that still hasn’t fully recovered since the financial crisis. Real estate activity is especially telling at this point in the cycle, as it may reflect homebuyers’ concerns around interest rates and future economic health.

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Click Here for our detailed Weekly Economic Calendar

Wednesday

  • New Home Sales (MoM, August)
  • Federal Reserve Policy Rate Decision & Press Conference (September)

Thursday

Friday


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Index data obtained via FactSet

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