Market Update: Fri, Nov 8, 2019 | LPL Financial Research

Daily Insights

Recession Watch Dashboard updated. We’ve updated our Recession Watch Dashboard for third quarter and posted it to the House of Charts. Based on your feedback, we’re committing to update and post the Dashboard by the third Wednesday of the month following quarter-end. Thank you for the feedback.

Stocks little changed
. U.S. stocks opened little changed this morning after the S&P 500 Index notched its fifth record high in the past two weeks on Thursday. Stocks climbed on news that the United States and China have both agreed to roll back tariffs if a limited trade agreement is reached.

Signs of stretched markets. New highs and big gains so far this year need not be viewed bearishly, despite signs that markets may be getting stretched in the very near term. Put-call ratios, measures of investor demand for options protection, are extremely low, and several short-term momentum indicators for major indexes are nearing overbought conditions.

New highs abound. Optimistic trade developments over the past month have powered a global stock rally. The MSCI All-World Country Index closed within 1.5% of a record high on Thursday. The STOXX Europe 600 Index hit its highest level since 2015 this week, while Japan’s Nikkei 225 Index marked a 52-week high. On the LPL Research blog today, we’ll highlight international stocks’ recent gains and discuss whether the relative outperformance may continue.

China imports, exports slide. China’s imports (in U.S. dollar terms) slid for a sixth straight month in October, indicating declining domestic demand for the world’s second-largest economy. China’s exports (in dollar terms) also fell last month, but the decline was less than consensus estimates. Easing tensions between the United States and China should eventually help buoy trade activity and manufacturing for both countries, but it may take a while for demand to recover.


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 Insured by FDIC/NCUA or Any Other Government Agency
  • Not Bank/Credit Union Guaranteed
  • Not Bank/Credit Union Deposits or Obligations
  • May Lose Value


For Public Use – Tracking # 1-914749