Market Update: Wed, Nov 13, 2019 | LPL Financial Research

Daily Insights

More negative headlines. U.S. stocks are lower this morning after President Donald Trump said on November 12 that the United States would consider raising tariffs on China if a limited trade agreement isn’t reached. The statement weighed on the S&P 500 Index, which pared as much as 0.5% in intraday gains during Trump’s speech yesterday. However, stocks powered through the close, and the S&P 500 ended yesterday up 0.2%.

Drifting higher. Stocks have drifted higher over the past few weeks after breakthroughs on the trade and geopolitical front. The S&P 500 hasn’t posted two consecutive declines for 25 trading days, the longest streak since January 2012. Equities may continue to trend higher through a seasonally strong end-of-year period, but investors should be prepared for periodic volatility with a lot of optimism priced in.

Moderate (but manageable) inflation. Consumer inflation continued at a moderate (but manageable) pace in October. The core Consumer Price Index (CPI), which excludes food and energy prices, rose 2.3% year over year in October, slightly lower than September’s 2.4% year-over-year pace. Core CPI has increased at least 2.3% year over year for the past three months, the first time that’s happened since May 2012. We’ll dig more into the October CPI report today on the LPL Research blog, and analyze what renewed inflationary pressures could mean for the Federal Reserve’s plans.



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 # 1-916479