Market Update: Wed, Mar 6, 2019 | LPL Financial Research

LPLResearch-Macro-View

Daily Insights

New business drives growth in U.S. services sector. The ISM non-manufacturing index showed that activity in February came in at a very strong 59.7 (50.0 denotes the threshold between expansion and contraction), driven largely by a spike in new orders. Overall business activity also improved, and exports were higher as well. Similarly, Markit’s gauge of the U.S. services sector reported a sharp increase in new business, and export orders rose at their strongest pace since April 2018. Overseas data painted a similar, though less robust, picture with Markit services PMI for the composite Eurozone ticking up to 52.8 in February from 52.3 in the prior month. The European data are promising, but one month does not constitute a trend, and the U.S. remains our preference for developed market equity exposure.

ADP misses, but still robust. Today’s ADP report, a precursor to Friday’s nonfarm payrolls, showed U.S. firms hired 183K workers last month, slightly below consensus estimates for 187.5K. Still, after last month’s 300K figure, a dip is not unexpected, and the U.S. labor market remains robust.

New home sales rebound. After trending lower since late-2017 amid rising interest rates, new home sales closed out 2018 on a high note, coming in at 621K vs. consensus estimates for 583K and November’s 299K. Still, the overall U.S. housing market remains somewhat of a mixed bag as existing home sales trending lower; however, recent declines in housing starts could reverse given we’ve seen a steady increase in new housing permits over the past several months.

10 weeks of green. U.S. stocks’ recent momentum has been historically impressive by many measures, and the Nasdaq Composite just notched another accomplishment. The Nasdaq has risen for the past 10 weeks, its longest winning streak in 19 years. On the LPL Research blog today, we’ll highlight the Nasdaq’s history of 10-week winning streaks, and show why there could be more gains in store for equities.

NEW Street View video. LPL Research Chief Investment Strategist John Lynch discusses our views on global economic growth, led by emerging markets. Watch and share the video now.

 LPLResearch-Monitoring-the-Week-Ahead

Click Here for our detailed Weekly Economic Calendar

Wednesday

Thursday

  • Initial Jobless Claims (Mar. 2)
  • Nonfarm Productivity (QoQ, Q4 2018)
  • Japan Leading Index (Preliminary, Jan)
  • Japan Coincident Index (Preliminary, Jan)
  • Eurozone Employment (Q4 2018)
  • Eurozone GDP Report (Q4 2018)
  • European Central Bank Rate Decision (March)
  • Japan GDP Report (Q4 2018)

Friday

IMPORTANT DISCLOSURES

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

Member FINRA/SIPC

For Public Use – Tracking # 1-829190 (Exp. 2/20)