Market Update: Thurs, Apr 18, 2019 | LPL Financial Research

LPLResearch-Macro-View

Daily Insights

Healthcare continues to exhibit weakness. While the S&P 500 Index remains less than 2% from all-time highs, the second largest sector remains under pressure this week, and is currently the only sector with negative returns YTD, trailing the broader index by 16.8%. With the tumble this week, healthcare appears to be oversold on a short-term basis as indicated by the 14-period Relative Strength Index, though we continue to prefer cyclical sectors such as Technology, Financials, and Industrials for equity allocations.

U.S, China hoping to close a deal. Reports are indicating that two new rounds of face-to-face meetings are tentatively scheduled over the next three weeks, first in Beijing and then Washington, as top negotiators look to finalize a deal and hold a signing ceremony in late May or early June. The news is encouraging, though details are scarce at this point.

U.S. consumer alive and well (and spending). Data out this morning showed initial jobless claims touched a new 49-year low, while retail sales in March were up 1.6% month over month, topping consensus estimates (+1.0%) as 12 of 13 major categories increased. The impressive rebound in consumer data, along with solid wage growth, historically low unemployment, and an accommodative Federal Reserve, suggest the current cycle has more room to run.

Green shoots on Main Street. We’ve talked a lot about green shoots in the U.S. economy recently. There has been a slew of recent data pointing to a rebound in growth, and yesterday, we gathered more clues on a potential recovery from the Federal Reserve’s Beige Book. On the LPL Research blog today, we’ll highlight the rebound in Main Street sentiment, which we measure using LPL Research’s Beige Book Barometer.

LPLResearch-Monitoring-the-Week-Ahead

Click Here for our detailed Weekly Economic Calendar

Thursday

  • 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)

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.

Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.

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 # 1-844442 (4/20)