Market Update: Wed, Oct 23, 2019 | LPL Financial Research

Daily Insights

Stocks opened little changed. Global stocks are little changed this morning after a busy day for Brexit headlines, or talks around the United Kingdom’s (U.K.) exit from the European Union (E.U.). The S&P 500 Index dropped 0.4% on October 22 after the U.K. Parliament voted in favor of Prime Minister Boris Johnson’s Withdrawal Agreement Bill (WAB), Continue reading

Another Brexit Delay Likely

Economic Blog
October 22, 2019

The United Kingdom’s (U.K.) withdrawal from the European Union (E.U.), or Brexit, is stumbling along, and another delay looks increasingly likely.

The U.K. Parliament’s  “Super Saturday” voting session last weekend failed to deliver a decisive outcome as members of parliament (MPs) voted only for an amendment that stated that they would be able to fully scrutinize the proposed deal prior to any vote on whether to approve it.

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Market Update: Mon, Oct 21, 2019 | LPL Financial Research

Daily Insights

Earnings update. So far, U.S. earnings season has been generally in line with expectations. With 75 S&P 500 Index companies having reported results, third quarter 2019 S&P 500 earnings are tracking to a more than 4% year-over-year decline, even though slightly more than 80% of reporting companies have exceeded forecasts. Estimates for the next 12 months have fallen 0.7% since September 30–consistent with recent quarterly trends–amid trade uncertainty, weak U.S. manufacturing data, and slowing international growth. Continue reading

Economic Slowdown Evident But Not Flashing Red

Economic Blog
October 18, 2019

U.S. leading economic indicators declined 0.1% in September, following a revised-down 0.2% decline in August.

The Conference Board’s Leading Economic Index (LEI) declined month over month, underwhelming Bloomberg estimates of a flat reading. As shown in the LPL Chart of the Day, the LEI climbed 0.4% year over year. This marks a new low since the 2016 downturn.

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Market Update: Fri, Oct 18, 2019 | LPL Financial Research

Daily Insights

Meandering near highs. The S&P 500 Index is meandering just below record highs, poised for its second week of gains amid trade and geopolitical breakthroughs. Global stocks have risen recently as well, with the Euro Stoxx 50 Index at its highest levels since January 2018 and the Japanese Nikkei near its December 2018 highs. Continue reading

Uncertainty Persists on Main Street

Economic Blog
October 17, 2019

Elevated uncertainty has persisted on Main Street, according to the Federal Reserve’s (Fed) latest Beige Book.

In the Beige Book, the Fed presents qualitative observations made by community bankers and business owners—or “Main Street”—about economic (housing, labor market, manufacturing, nonresidential construction, prices, tourism, wages) and banking conditions (lending conditions, loan demand, loan quality). At LPL Research, we maintain an indicator called the Beige Book Barometer (BBB) to gauge Main Street’s sentiment by looking at how frequently key words and phrases appear in the text.

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Market Update: Thurs, Oct 17, 2019 | LPL Financial Research

Daily Insights

Stocks opened higher on Brexit news. Stock futures got a lift early this morning after reports that the U.K. and European Union had reached a Brexit deal (more on that below). U.S. and European stocks are higher on the news, which is helping offset some concerning U.S.-China trade headlines that suggest some risk to the recent “mini-deal.” Continue reading