Daily Insights
Stocks drop. Stocks are down this morning, paring gains after the S&P 500 Index climbed within 1% of a record-high close on October 15. Investors are stepping back amid weaker than expected economic data, increased tensions in the U.S.-China relationship, and pessimistic Brexit Continue reading
Market Blog
October 16, 2019
“History doesn’t repeat itself, but it often rhymes.” — Mark Twain
Stocks have continued their surprising strength in October, thanks to a potential thaw in the U.S.-China trade dispute. And remember, the S&P 500 Index has been lower in October during a pre-election year only once since 1987. Additionally, over the past 20 years, October has been the third-best month on average for the S&P 500. October has had a bad rap due to some spectacular crashes, but the truth is the month usually is pretty good for stocks.
Economic Blog
October 15, 2019
The debate over the United Kingdom’s (U.K.) withdrawal from the European Union (EU), or Brexit, is reaching another milepost in what could be an action-packed week.
Talks between the U.K. government and the EU have entered “tunnel” negotiation mode, in which all details of behind closed doors talks are expected to remain secret until any deal occurs. This negotiation style allows negotiators from both sides to throw around some of the more unusual proposals without fear of political repercussions.
Daily Insights
Earnings season kicks off. U.S. stocks are higher this morning as third quarter earnings season kicks off with a slew of big bank reports. The few reports we’ve seen so far this season have been generally in line with expectations. Overall, we expect to see little if any S&P 500 Index earnings growth for the quarter amid continued trade tensions. Continue reading
Daily Insights
A verbal agreement. Friday, October 11, the U.S. announced that it had reached a verbal agreement with China, concluding two days of face-to-face talks and rampant speculation of a deal in financial markets. Continue reading
Economic Blog
October 11, 2019
Equity markets are rallying on Friday over optimism regarding the U.S.-China trade discussions. President Trump is set to meet this afternoon with Chinese Vice Premier Liu He, and that has many thinking some type of truce or at least a pause in the trade dispute could be in the works.
Daily Insights
Global optimism. Stocks are up this morning as investors watch for any developments in U.S. and China officials’ face-to-face trade talks. President Trump announced that Thursday’s discussions went “very well,” and he is scheduled to meet with Vice Premier Liu He today. Continue reading
Economic Blog
October 10, 2019
Consumer prices grew at the fastest pace of the cycle for a second straight month in September.
As shown in the LPL Chart of the Day, the core Consumer Price Index (CPI), which excludes food and energy prices, rose 2.4% year over year last month. Consumer prices increased at a healthy pace, even as year-over-year growth in the core Producer Price Index (PPI) declined for an eighth straight month.
Daily Insights
Talks set to begin. Stocks are down this morning, taking a breather after a volatile start to the week. Investors have focused primarily on trade headlines this week as U.S. and China officials are scheduled to begin face-to-face trade talks today. Continue reading
Economic Blog
October 09, 2019
The United States and China have faced growing economic pressure to reach a trade deal. However, the stress may be fading for one party.
As shown in LPL Research’s Chart of the Day, China’s economy is exhibiting signs of stabilizing growth, according to composite leading indicators (CLI) data from the Organisation for Economic Co-operation and Development (OECD). The OECD’s assessment of the Chinese economy improved for a sixth straight month in August, while the OECD’s U.S. gauge continued to slip.