Market Update: Wed, Dec 12, 2018 | LPL Financial Research


Daily Insights

May to face confidence vote on Brexit. UK Prime Minister Theresa May will face a vote of confidence after the required 48 letters of “no confidence” were received from MPs following her three-stop tour across Europe yesterday. The meetings were an attempt to seek changes to her existing deal after she was forced to abandon a planned Parliamentary vote due to a lack of support. She could be replaced as early as mid-January if a simple majority of 158 Conservative MPs vote in favor. With the March 29 deadline looming for the UK to break from the EU, with or without a Brexit deal, along with Italy’s ongoing budget scuffle with EU officials and broader European economic data trending in the wrong direction, we continue to suggest avoiding or minimizing tactical exposure to the region.

Is a shutdown coming? President Trump threatened to shut down the U.S. government next week in a discussion with Senate Minority Leaders Chuck Schumer and House Minority Leader Nancy Pelosi yesterday. So what does it mean for stocks if this happens? The good news is the S&P 500 Index has gained during each of the previous five shutdowns going back 23 years. We will take a closer look at this potential event later today on the LPL Research blog, but it’s worth noting that another, more important, debt ceiling debate will take place next summer.

Oil slide keeps inflation in check. Consumer Price Index data out this morning showed prices declined month over month, thanks to oil’s continued decline in November, which offset increases in an array of other areas including: shelter, used cars/trucks, medical care, and recreation. Meanwhile, the core reading (ex food and energy) was unchanged from the prior month but increased 2.5% year over year. Though not the Federal Reserve’s preferred inflation measure, it should keep it on track to raise rates at next week’s monetary policy meeting.


Click Here for our detailed Weekly Economic Calendar


  • CPI Report (MoM, Nov)
  • Eurozone Industrial Production (Oct)
  • Eurozone Employment Report (Q3)


  • Initial Jobless Claims (Dec. 8); LP: 234K
  • European Central Bank Rate Decision
  • Nikkei Japan Manufacturing PMI (Preliminary, Dec)
  • Japan Industrial Production (Oct)
  • China Retail Sales (Nov)
  • China Industrial Production (Nov)


  • Retail Sales (MoM, Nov)
  • Industrial Production (MoM, Nov)
  • Markit US Services PMI (Preliminary, Dec)
  • Markit US Manufacturing PMI (Preliminary, Dec)
  • Markit Eurozone Manufacturing PMI (Preliminary, Dec)



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 #1-801976 (Exp. 12/19)