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.
- Japan Leading Index (Feb)
- Japan Coincident Index (Feb)
- Bank of Japan Rate Decision (Apr)
- Germany Import Prices (Mar)
- 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)
- GDP Report (Initial, Q1 2019); Cons: 1.8%, LP: 2.2%
- University of Michigan Sentiment Index (Apr); LP: 96.9
- China Industrial Profits (Mar)
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Index data obtained via FactSet
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