Market Update: Wednesday, November 7, 2018

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Daily Insights

  • LPL Market Signals Podcast. In our latest episode, listen to LPL Financial Chief Investment Strategist John Lynch and Senior Market Strategist Ryan Detrick discuss why the S&P 500 Index’s tumultuous October doesn’t dampen our optimism for the U.S. economy. Subscribe to the free Market Signals podcast series on iTunes, Google Play, Spotify, or wherever you get your podcasts!

  • As-expected midterm results boost stocks, weaken dollar. Stocks are moving higher this morning and the dollar is weakening vs major currencies after U.S. midterm election results were largely as expected. A now-split Congress suggests Republicans could face higher hurdles in passing additional stimulus, which has resulted in an increased budget deficit that helped spur dollar strength and rising bond yields. However, the Trump Administration could find areas of compromise to continue spending over the next two years, particularly around infrastructure.

  • A gridlocked Washington’s impact on sectors. The consensus was right. Although some votes are still rolling in, the Republicans have held onto their Senate majority, while the Democrats are poised to retake control of the House of Representatives. In today’s LPL Research blog, we highlight U.S. stocks’ history under a gridlock in Washington, and outline politically sensitive sectors to watch in the coming months.

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Click Here for our detailed Weekly Economic Calendar

Wednesday

Thursday

  • Initial Jobless Claims (Nov. 3); LP: 215K
  • Federal Reserve Rate Decision (November Meeting)
  • European Commission Updates Its Economic Forecasts (N/A)
  • China PPI (Oct)
  • China CPI (Oct)

Friday

  • PPI Report (MoM, Oct)
  • Wholesale Inventories (MoM, Sep)
  • UK GDP Report (Q3)

 

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Index data obtained via FactSet

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