Market Update: Tues, Oct 22, 2019 | LPL Financial Research

Daily Insights

Another push to record highs. Stocks are slightly higher this morning as the S&P 500 Index continues to hover just below record highs. Investors are watching Brexit developments, as well as a slew of earnings results amid a busy reporting week for S&P 500 companies. Breaking to all-time highs has proven to be a tough task for U.S. stocks. On October 21, the S&P 500 climbed within 0.7% of a record-high close, the 19th trading session in which the benchmark has pushed within 1% of this particular all-time high of 3,025.86.

“Super Saturday” fails to deliver. The United Kingdom’s (U.K.) withdrawal from the European Union, or Brexit, is stumbling along, and another delay looks increasingly likely. The U.K. Parliament’s  “Super Saturday” voting session over the weekend failed to deliver a decisive outcome as members of parliament voted for a delay until the proposed deal is fully scrutinized. Today on the LPL Research blog, we’ll provide an update on Brexit discussions, and what we think another Brexit deadline delay could mean for financial markets.

10-year yield hits one-month high. The 10-year U.S. Treasury yield climbed to a one-month high of 1.8% yesterday, bolstered by trade and geopolitical optimism. The improving global environment has also buoyed sovereign debt yields across the world. The 10-year German bund yield and the U.K. 10-year yield are both heading for their biggest monthly gains since January 2018. Progress on the trade and geopolitical front could keep a floor under U.S. yields, but we don’t expect much more upside for the 10-year yield at these levels.

NEW Market Signals Podcast. In Answers to Your Questions, LPL strategists answer an assortment of questions from LPL advisors, including the best advice for a new investor. Thanks to all LPL advisors who submitted a question! If we didn’t answer your question, we’ll save it for another edition. To listen to previous podcasts go to Market Signals podcast. Subscribe to the free Market Signals podcast series on iTunes, Google Play, Spotify, or wherever you get your podcasts.

 

IMPORTANT DISCLOSURES

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 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 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.

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

 

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

 

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:

Member FINRA/SIPC

For Public Use – Tracking # 1-907510