Market Update: Fri, Aug 9, 2019 | LPL Financial Research


Daily Insights

More trade worries. Global stocks are modestly lower this morning as investors process reports that the United States is delaying a decision to grant some U.S. companies permission to conduct business with Huawei Technologies, a Chinese tech giant that was blacklisted in May amid the U.S.-China trade dispute. Producer prices in China also declined year over year in July for the first time since 2016, fueling worries about international deflation.

Strong reversal for equities. Even though stocks are lower in early trading today, stocks have staged a strong comeback this week, clawing back from the S&P 500 Index’s 3% drop from Monday to close slightly higher on the week through Thursday. While we don’t think volatility is over just yet, there are several technical reasons to believe a retest of the December lows is an unlikely scenario. We’ll explore support and sentiment later today on the LPL Research blog.

Producer price growth slows. The pace of wholesale price growth steadily declined in July, hinting that weakening global demand continues to weigh on domestic inflationary pressures. The core Producer Price Index (PPI), which excludes food and energy prices, unexpectedly dropped 0.1% month over month, its first decline since February 2017. Core PPI rose 2.2% year over year, the slowest pace of growth since June 2018. We’ll get more details on the state of inflation next week, as July Consumer Price Index (CPI) data is released on August 13 and import/export price data is released August 14.



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.

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.

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 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 that is not an LPL Financial affiliate, please note LPL Financial makes no representation with respect to such entity.

  • Not Insured by FDIC/NCUA or Any Other Government Agency
  • Not Bank/Credit Union Guaranteed
  • Not Bank/Credit Union Deposits or Obligations
  • May Lose Value



For Public Use – Tracking # 1-881434