Market Update: Wed, Jan 23, 2019 | LPL Financial Research


Daily Insights

Volatility reemerges, but focus on the long term. Major U.S. indexes are recouping some of yesterday’s losses, which stemmed from reports that the White House rejected an offer hold preparatory talks ahead of trade negotiations between top officials later this month. But after the S&P 500 Index’s ~10% run over the past four weeks (details below), including a four-day win streak prior to yesterday’s slide, traders were likely looking for a reason to take some profits. However, focus is returning to corporate earnings, which ultimately drive stock prices, as upbeat numbers this morning from three Dow components are providing the benchmark index with a boost and underpinning a tentative rebound in sentiment. To be sure, global growth concerns, the U.S. government shutdown, and a host of other issues are still on the market’s radar, but it’s important for investors to discount short-term swings and focus on their long-term goals.

Stocks up, now what? The S&P 500 has gained more than 10% over the past four weeks–which includes the 2.7% selloff on Christmas Eve–, for the best four week stretch since 2011. But even more impressive is how consistent the gains have been. In fact, the S&P 500 has added at least 1.5% for four consecutive weeks for the first time since coming off of the March 2009 lows. Today on the LPL Research blog we will show why this could potentially be a bullish development – as stocks tend to outperform over the following three-month period after strong four-week periods.

In case you missed it: LPL Research media interviews. LPL Research on CNBC. Chief Investment Strategist John Lynch was on CNBC January 17th talking markets. You can watch the interview here. LPL Research on Bloomberg radio. Senior Market Strategist Ryan Detrick was on Bloomberg radio talking markets. You can listen to his comments here (starting at the 29 minute mark).



Click Here for our detailed Weekly Economic Calendar


  • Richmond Fed Manufacturing Index (Jan)
  • Eurozone Consumer Confidence (Jan)
  • Nikkei Japan Manufacturing PMI (Preliminary, Jan)


  • Initial Jobless Claims (Jan. 19)
  • Markit US Composite PMI (Preliminary, Jan)
  • Markit US Manufacturing PMI (Preliminary, Jan)
  • Markit US Services PMI (Preliminary, Jan)
  • Leading Index (MoM, Dec)
  • Japan Leading Index (Nov)
  • Markit Eurozone Manufacturing PMI (Preliminary, Jan)
  • European Central Bank Rate Decision (N/A)
  • Japan Tokyo CPI Report (Jan)




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 #1-814572 (Exp. 01/20)