Market Update: Wed, Apr 24, 2019 | LPL Financial Research

LPLResearch-Macro-View

The wait is over. Yesterday, the S&P 500 Index notched a fresh all-time closing high of 2,933.68, while the Nasdaq Composite reached its own record high of 8,120.22. It’s been a tough road back to the highs, but U.S. stocks’ persistence and momentum has been impressive. To get there, investors have weathered back-and-forth in trade negotiations, a historic government shutdown, unrelenting Brexit headlines, the Federal Reserve’s (Fed) U-turn in policy, and signs of a global slowdown.

A prolonged record drought. It’s been a long seven months since the last S&P 500 record. Fortunately, U.S. stocks have powered through record highs after a prolonged dry spell. On the LPL Research blog today, we’ll highlight U.S. stocks’ history of strong returns after a 6-month record drought.

Housing data’s mixed signals. A report yesterday showed new home sales unexpectedly jumped 4.5% month over month, well above consensus estimates for a 2.7% decline. Earlier this week, data showed existing home sales slid 4.9% in March, below estimates for a 3.8% decrease. Mortgage rates have dropped to their lowest levels since the beginning of 2018 amid global weakness and a Fed pause. However, lower rates this year haven’t led to convincingly stronger housing activity.

LPLResearch-Monitoring-the-Week-Ahead

Click Here for our detailed Weekly Economic Calendar

Wednesday

  • Japan Leading Index (Feb)
  • Japan Coincident Index (Feb)
  • Bank of Japan Rate Decision (Apr)
  • Germany Import Prices (Mar)

Thursday

  • Durable Goods Orders (Preliminary, MoM, Mar); Cons: 0.5%, LP: -1.6%
  • Initial Jobless Claims (Apr. 20); LP: 196K
  • Kansas City Fed Manufacturing Activity Index (Apr); LP: 10
  • Japan Jobless Rate (Mar)
  • Japan Tokyo CPI Report (Apr)
  • Japan Industrial Production (Preliminary, Mar)

Friday

  • GDP Report (Initial, Q1 2019); Cons: 1.8%, LP: 2.2%
  • University of Michigan Sentiment Index (Apr); LP: 96.9
  • China Industrial Profits (Mar)

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 # 1-846030 (4/20)