- New LPL Market Signals Podcast. On the latest episode of the LPL Market Signals Podcast, listen to LPL Financial Chief Investment Strategist John Lynch and Senior Market Strategist Ryan Detrick discuss signs for strong third-quarter earnings and a potential year-end rally following the stock drop.
- Stocks’ big day. Investors’ risk appetites resurged yesterday after a sharp equity selloff last week. The S&P 500 Index, Nasdaq and Dow all posted their biggest one-day gains since March, while the Russell 2000 jumped the most since November 2016. Breadth in yesterday’s gains was also unusually strong. The NYSE Advancers/Decliners gauge, or the ratio of increasing NYSE stocks to decreasing NYSE stocks, was the highest since July 2016. The S&P 500 is taking a breather this morning, declining modestly in early trading after yesterday’s strength.
- Industrial production up fourth straight month. The seasonally-adjusted 0.3% growth month over month was below August’s unrevised 0.4% figure but above analysts’ expectations for a 0.2% increase. An increase in mining sector activity-which includes WTI crude oil and natural gas extraction-which has been trending up with oil prices since 2015, helped U.S. industry output increase for a fourth straight month in September. Manufacturing output, the largest component of the index, continued to expand last month also rose for a fourth straight month.
- Data indicate housing market remains healthy. Yesterday’s better-than-expected NAHB Housing Market Index was offset somewhat this morning by building permits and housing starts data from September that came in modestly below analyst forecasts and prior month figures. Similar to Monday’s retail sales, Hurricane Florence is credited with disrupting activity in the Southeast, which accounts for about half of starts and fell 13.7% from the prior month; expect Hurricane Michael to impact next month’s report. On the positive side, permits for single-family homes were up 2.9% month over month, the biggest gain in a year, suggesting builders have a steady pipeline that could contribute to growth in the fourth quarter as consumer demand, helped by a solid job market and lower taxes, as well as post-storm rebuilding, overshadows headwinds including rising mortgage rates and property prices.
- Missing the worst (and) best days in the market. After more than three months without a single 1% change (up or down) for the S&P 500, volatility came back — and in a big way — this past week. What would happen if you could avoid all the big down days for stocks while invested in a portfolio mimicking the makeup of the S&P 500? We’ll take a look later today on the LPL Research blog.
- MBA Mortgage Applications
- Retail Sales Advance MoM (Sept)
- Housing Starts (Sept)
- Building Permits (Sept)
- UK PPI Output
- EU CPI Harmonized
- Initial Jobless Claims
- Leading Index (Sept)
- China GDP Y/Y
- China Industrial Output Y/Y
- China Retail Sales Y/Y
- Existing Home Sales (Sept)
- Baker Hughes U.S. Rig Count (Oct)
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 – Tracking #1-783039 (Exp. 10/19)