Market Update: Tues, Nov 19, 2019 | LPL Financial Research

Daily Insights

On the Recession Watch. With the S&P 500 Index at record highs, our outlook remains optimistic, but we don’t want to be complacent. We take a look at some of our favorite leading indicators to see what they say about the economic expansion and its accompanying bull market. Listen to this week’s Market Signals podcast (coming soon!).

Pushing higher. U.S. stocks are pushing higher this morning, with the S&P 500 poised for its fifth straight record-high close. It’s been a quiet period for headlines, but trade optimism and seasonal headwinds have carried equities steadily higher over the past several weeks.

Impressive streaks. Stocks’ recent rally has been unusually persistent, and the S&P 500 has posted a few impressive streaks. The S&P 500 hasn’t been down back-to-back days for 29 straight trading days, the longest streak since March 2005. The benchmark has also closed above its upward-sloping 10-day moving average for 28 days in a row — yet another clue of how strong recent momentum has been. We’ll discuss these achievements today on the LPL Research blog.

Yields take a step back. The 10-year U.S. Treasury yield took a step back last week, falling 0.11% for its biggest weekly decline since the beginning of October. Yields’ decline was especially odd considering the S&P 500 rose last week, as you’d typically expect stocks to fall with yields. We’re not surprised to see yields pause after a 0.40% run over the past six weeks. We still think the 10-year yield’s fair value is higher than its current levels, but Treasuries’ attractive valuations relative to other sovereign debt could keep U.S. yields contained.



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 # 1-918627