Month: October 2019

Three and Done

Posted by

Economic Blog
October 31, 2019

The Federal Reserve (Fed) could be three and done with interest rate cuts.

On October 30, the Fed reduced interest rates by 25 basis points (0.25%) in its third rate cut of the economic cycle. While the headline decision was dovish, the Fed signaled this could be the last rate cut for a while. The clearest hint was policymakers’ removal of language stating they would “act as appropriate to sustain the expansion.” Going forward, the Fed will now “assess the appropriate path of the target range for the federal funds rate.”

Continue reading →

Market Update: Thurs, Oct 31, 2019 | LPL Financial Research

Posted by

Daily Insights

A Fed-fueled record high. Stocks are lower this morning after the S&P 500 Index closed at a record high yesterday. Pessimistic trade headlines have taken some air out of equities after investors cheered the Federal Reserve’s (Fed) third rate cut of the cycle, along with Fed Chair Jerome Powell’s positive economic messaging and commitment to flexibility in deciding future policy changes. Continue reading →

The U.S. Economy Chugs Along

Posted by

Economic Blog
October 30, 2019

Gross domestic product (GDP) growth slowed for a third quarter, but the U.S. economy is still chugging along at an average pace.

GDP grew 1.9% in the third quarter, its slowest pace of growth since the fourth quarter of 2018, as shown in the LPL Chart of the Day. Still, GDP increased 2% year over year last quarter, slightly below 2.1% year-over-year average growth since the cycle started in July 2009.

Continue reading →

Market Update: Wed, Oct 30, 2019 | LPL Financial Research

Posted by

Daily Insights

Busy day. Stocks are little changed this morning as investors digest third quarter gross domestic product (GDP) data before a Federal Reserve (Fed) policy decision later today. The Fed’s decision is scheduled to come out at 2 p.m. ET, followed by Fed Chair Jerome Powell’s post-meeting press conference. Continue reading →

Will The Fed Go Three For Three?

Posted by

Market Blog
October 29, 2019

The Federal Reserve Bank (Fed) is widely expected to cut interest rates on Wednesday, October 30, which would be the third cut this year after nine consecutive hikes.

The current fed funds rate target is 1.75–2%, with a 25 basis point cut likely happening this week. As discussed in Market Tricks and Treats, we think there will be only one more rate cut this year, and we don’t expect the Fed to take its policy rate below 1.5%, even in 2020.

Continue reading →

Market Update: Mon, Oct 28, 2019 | LPL Financial Research

Posted by

Daily Insights

Earnings season producing modest–but many–upside surprises. With 200 S&P 500 Index companies having reported so far, third quarter 2019 earnings growth is tracking to a 3.8% year-over-year decline. That pace is just 1% above September 30, 2019, levels, a small amount of upside considering nearly 80% of S&P 500 companies have beaten forecasts. Continue reading →

Looking for a Spark in Global Manufacturing

Posted by

Economic Blog
October 25, 2019

A U.S.-China trade truce wasn’t enough to spark global manufacturing activity in October.

Manufacturing activity around the world remains sluggish despite trade progress, according to preliminary Markit Purchasing Managers’ Index (PMI) data for October. As shown in the LPL Chart of the Day, manufacturing PMIs for the Eurozone, Germany, and Japan remained near multi-year lows in October.

Continue reading →