Daily Insights
Stocks rebound. Global stocks are modestly higher this morning after a volatile week of trade headlines and yield curve concerns. The S&P 500 Index closed down 2.4% for the week through Thursday, heading for its third straight weekly loss after two significant selloffs on Monday and Wednesday. Continue reading
Daily Insights
Stocks trying to hold early-morning rebound. After the S&P 500 Index’s nearly 3 percent decline yesterday, stocks are trying to regain their footing this morning amid another flurry of trade headlines and yield curve inversion concerns (please see yesterday’s LPL Research blog). Continue reading
Market Blog
We continue to believe there is technical support for the S&P 500 Index as discussed in our August 9 blog, and we’re already seeing some signs of the pessimism that is necessary for forming a bottom. The negative sentiment intensified August 14 following the inversion of the yield curve (discussed in our August 14 blog), so today we want to take a closer look at some key levels the LPL Research team is watching.
Economic Blog
A closely watched point on the Treasury yield curve has fallen negative for the first time in this economic cycle.
As shown in the LPL Chart of the Day, Yield Curve Inversion Raises Economic Questions, the spread between the 2-year and 10-year Treasury yields fell as low as -2 basis points (-0.02%) in trading on August 14.
Daily Insights
Global stocks decline. Global stocks are down this morning following a strong day for U.S. markets fueled by upbeat trade headlines. The S&P 500 Index rose 1.5% yesterday after the United States announced it would delay some tariffs scheduled to go into effect September 1, and resume trade talks with China in September. Continue reading
Economic Blog
Consumer inflation has surged back after a strong quarter of U.S. consumer demand.
As shown in the LPL Chart of the Day, Consumer Inflation Picks Up in July, the core Consumer Price Index (CPI), which excludes food and energy prices, rose 2.2% year over year last month, its fastest pace of growth in six months. Core CPI has climbed 0.3% month over month in June and July, its biggest two-month gain since 2005.
Daily Insights
Earnings continue gradual improvement. With 90% of S&P 500 Index companies’ results in, second quarter 2019 earnings are tracking down -0.7% year over year, above June 30 estimates of -2.7% despite a more than 1 percentage point drag from Boeing and a modest improvement over the prior week. Continue reading
Daily Insights
Earnings continue gradual improvement. With 90% of S&P 500 Index companies’ results in, second quarter 2019 earnings are tracking down -0.7% year over year, above June 30 estimates of -2.7% despite a more than 1 percentage point drag from Boeing and a modest improvement over the prior week. Continue reading
U.S.-China trade tensions have ratcheted up again following President Trump’s decision to level tariffs on the remaining $300 billion of U.S. imports from China. Combine that with China’s decision to let its currency (the yuan) weaken past the 7 per dollar level, and investors may be more concerned than ever that global tensions could drag down the economy and stocks.
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. Continue reading