Likely border/budget deal, trade deadline extension push S&P 500 above key technical support level. Reports out of Washington yesterday indicated that President Trump plans to sign a border security deal that would pave the way for a budget agreement, averting a second government shutdown. The news, along with separate comments from the president that the March 1 trade deal deadline could be pushed back if sufficient progress is made in this week’s negotiations, helped drive stocks higher. The S&P 500 Index closed above its 200-day moving average, a key technical support level, for the first time since December 3.
Consumer inflation little changed. Consumer Price Index data out this morning was little changed from the prior month. The headline index’s 1.6% year-over-year increase in January was the smallest since June 2017 as falling oil prices offset rising shelter and apparel prices. The core reading, which excludes the more volatile food and energy components, increased 2.2% for a third straight month. The data continue to suggest an environment characterized by stable inflation that support the Federal Reserve’s recent guidance that it intends to scale back its rate-hike campaign.
The Year of the Pig. The Chinese New Year started earlier this month and with it came the Year of the Pig. Let us stress that we would never suggest to invest purely based on the signs of the zodiac, but it is also worth pointing out that out of the 12 zodiac signs, stocks have done the best during the Year of the Pig. Today on the LPL Research blog we will take a closer look at this fun phenomena.
- CPI Report (MoM, Jan)
- Eurozone Industrial Production (Dec)
- Japan GDP Report (Preliminary, Q4 2018)
- China Imports (Jan)
- China Exports (Jan)
- China Trade Balance (Jan)
- PPI Report (MoM, Jan)
- Initial Jobless Claims (Feb. 9)
- Germany GDP Report (Preliminary, Q4 2018)
- Eurozone GDP Report (Preliminary, Q4 2018)
- Japan Industrial Production (Dec)
- China CPI Report (Jan)
- China PPI Report (Jan)
- Retail Sales (MoM, Jan)
- Industrial Production (MoM, Jan); Cons: 0.2%, LP: 0.3%
- University of Michigan Sentiment Index (Preliminary, Feb); LP: 91.2
- Eurozone Trade Balance (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 solicitation 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 # 1-822248 (Exp. 2/20)