Daily Insights
Stocks cheer positive headlines. Stocks are higher this morning amid an optimistic turn in global headlines. The European Central Bank announced it would leave rates unchanged, and confirmed it would continue a new round of quantitative easing. Continue reading
Market Blog
October 23, 2019
“Everything is awesome, when you’re living out a dream.” The Lego Movie
As the S&P 500 Index continues to flirt with new record highs, something under the surface is taking place that is making 2019 extremely special. Or dare we say, “awesome”.
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
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.
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. Continue reading
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 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.
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
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.
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