Market Update: Fri, May 3, 2019 | LPL Financial Research


Daily Insights

NEW Street View video. Chief Investment Strategist John Lynch discusses the outcome of the recent Federal Reserve meeting and addresses investors’ concerns. Watch and share the video now.

Volatility reemerges midweek. Selling pressure  picked up mildly following the Federal Reserve’s (Fed) statement on Wednesday. That day, 54% of the components in the S&P 500 Index closed at an intraday low. While the benchmark index is only about 1% off its closing highs, a further pullback is certainly possible. U.S. stocks have experienced a 14% correction per year on average, and the S&P 500 has averaged an 8.9% slide in years when it has gained at least 10% in the first quarter. On a technical basis, we would look for the 2815 level to offer potential support on any such pullback, as well as the 200-day moving average (near 2774).

Job market looks healthy. The April jobs report, released May 3, showed U.S. hiring hasn’t wavered amid global uncertainty and trade tensions. Nonfarm payrolls rose 263K, higher than estimates for 190K. Average hourly earnings grew 3.2% year over year, around the fastest pace of the cycle, and at a level that should continue to bolster consumer confidence and support consumer spending. The unemployment rate fell to 3.6%, a cycle low.

The power of productivity. Productivity in the first quarter rose at the fastest year-over-year pace since 2010, thanks to last year’s surge in business spending and solid wage growth. Continued labor-market strength could kick the economic expansion into another gear, as we’ll explain later today on the LPL Research blog.


Click Here for our detailed Weekly Economic Calendar


  • Unemployment Rate (Apr)
  • Markit US Services PMI (Apr)
  • Markit US Composite PMI (Apr)
  • ISM Non-Manufacturing Index (Apr)
  • Eurozone PPI Report (Mar)
  • Eurozone CPI Report (Preliminary, Apr)
  • Nonfarm Payrolls Report (Apr.)


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


For Public Use – Tracking # 1-849401 (5/20)