The win streak is over. Stocks fell only slightly yesterday, but closed meaningfully off their early morning highs. In the end, the Dow snapped a 6-day win streak and the S&P 500 Index ended a 5-day win streak. After the worst month of May for the S&P 500 since 2010, stocks have bounced back nicely in June. In fact, the S&P 500 is up 4.9% so far in June, which would be the best June since 1999. Additionally, after seven trading sessions, the S&P 500 is off to its best start for any month since October 2015.
Consumer inflation slows. Year-over-year growth in the core Consumer Price Index (core CPI) (excluding food and energy prices) slowed to 2% in May, down from 2.1% in April. Consumer inflation has slowed this year even as producer price and wage growth has remained healthy, likely because of softening global demand. Today’s weaker CPI report could increase speculation that a Federal Reserve rate cut is looming in the near-term.
Sentiment surges. Business and consumer confidence surged to highs last month despite renewed uncertainty in the U.S.-China trade dispute. Upbeat sentiment is an encouraging sign for demand, but we’re not sure if this uptick will last. We’ll dig into recent sentiment data later today on the LPL Research blog.
NEW Market Signals podcast. Listen to this week’s episode, in which Chief Investment Strategist John Lynch and Equity Strategist & Portfolio Manager Jeffrey Buchbinder discuss the continuing effects of the trade war and what it means for the U.S. and global economies over the next several months. Subscribe to the free Market Signals podcast series on iTunes, Google Play, Spotify, or wherever you get your podcasts!
- Import Price Index (May); Cons: -0.3%, LP: 0.2%
- Export Price Index (May); LP: 0.2%
- Initial Jobless Claims (Jun. 8); LP: 215K
- Germany CPI Report (May)
- Eurozone Industrial Production (Apr)
- China Industrial Production (May)
- China Surveyed Jobless Rate (May)
- Retail Sales (May); Cons: 0.6%, LP: -0.2%
- Industrial Production (May); Cons: 0.2%, LP: -0.5%
- University of Michigan Sentiment Index (Preliminary, Jun); LP: 100
- Japan Industrial Production (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.
Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
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.
Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL is not an affiliate of and makes no representation with respect to such entity.
If your advisor is located at a bank or credit union, please note that the bank/credit union is not registered as a broker-dealer or investment advisor. Registered representatives of LPL may also be employees of the bank/credit union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, the bank/credit union. Securities and insurance offered through LPL or its affiliates are:
|Not FDIC or NCUA/NCUSIF Insured | No Bank or Credit Union Guarantee | May Lose Value | Not Guaranteed by Any Government Agency | Not a Bank/Credit Union Deposit|
Index data obtained via FactSet
For Public Use – Tracking # 1-862663 (6/20)