Weekly Market Drivers: Last week’s market drivers included solid U.S. labor market data, the unofficial start of first quarter earnings season, and further signs of political and structural stress in Europe. Check out Friday’s Weekly Market Drivers post on the LPL Research blog for more insight.
What’s priced in? With the S&P 500 Index less than 1% away from its all-time high set September 20, 2018, a lot of good news is reflected in current stock prices. In consultation with our friends at Strategas Research Partners, in today’s Weekly Market Commentary, we have taken a look at what may or may not be priced into stocks to identify some potential surprises that could drive the next leg of this rally, as well as some possible areas of disappointment should something priced in not occur. Two areas of possible positive surprises include the quality of an eventual trade deal with China and corporate profits.
Too high, or too low? The U.S. inflation narrative has flipped again. Late last year, deteriorating global conditions shifted the economic landscape and fueled concerns that inflationary pressures could be too low, hinting to an impending U.S. economic slowdown. Even though the market’s perception of inflation has changed significantly, we see signs in inflation data that lower inflation fears could be fleeting. In this week’s Weekly Economic Commentary, we’ll outline key takeaways from the latest pricing and wage reports, and what the data show about the state of U.S. inflation.
LPL Advisors’ Top Tweets. Check out the LPL Research blog later today to see some of our favorite advisor tweets from March. We are grateful for all the terrific engagement with advisors on social; please join us via @LPLResearch.
Week ahead. First quarter earnings season ramps up with 48 S&P 500 companies scheduled to report. On the economic front, manufacturing, retail sales and Leading Index data will draw much of the attention in the U.S. Overseas, Purchasing Managers’ Index data will be the focal point of the European docket with France, Germany and the composite Eurozone all reporting. In Asia, Chinese gross domestic product and Japanese industrial production are also scheduled to be released. Track these and other important events on our Weekly Global Economic & Policy Calendar.
- Industrial Production (MoM, Mar)
- Japan Trade Balance (Mar)
- Japan Exports (Mar)
- Japan Imports (Mar)
- China Industrial Production (Mar)
- China GDP Report (Q1)
- Trade Balance (Feb)
- Federal Reserve Beige Book (Apr)
- Japan Industrial Production (Feb)
- Eurozone Trade Balance (Feb)
- Eurozone CPI Report (Mar)
- Retail Sales (MoM Mar)
- Initial Jobless Claims (Apr 13)
- Markit US Manufacturing PMI (Preliminary Apr)
- Markit US Services PMI (Preliminary Apr)
- Markit US Composite PMI (Preliminary Apr)
- Leading Index (MoM Mar)
- Germany PPI Report (Mar)
- Japan CPI Report (Mar)
- Housing Starts (MoM Mar)
- Building Permits (MoM Mar)
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Index data obtained via FactSet
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