Market Blog
It’s the last day of the decade, so we thought we’d do our own “decade challenge” for the S&P 500 Index.
After all, it has been an unprecedented 10 years for financial markets. At the end of 2009, the S&P 500 was nine months into what would be the longest bull market on record. Since then, the benchmark has almost tripled, riding a wave of economic growth, improved earnings, muted inflation, and central bank accommodation. Continue reading
Daily Insights
Last day of the year. U.S. stocks are relatively unchanged on the last trading day of 2019. Stocks may meander into the New Year in the absence of market-moving headlines, capping an impressive year for many asset classes. The S&P 500 Index has climbed 29% year to date, poised for its best year since 2013. Continue reading
Daily Insights
Coming to a close. U.S. stocks are slightly higher this morning as the year (and the decade) comes to a close on Tuesday. There aren’t many macroeconomic events scheduled between now and then, and headlines have been sparse over the past couple of weeks. We expect stocks to meander around record levels amid light trading these next two days. Continue reading
Economic Blog
2019 was the year of the U.S. consumer.
When the year started, trade tensions were heating up and recession calls had grown louder. Many investors saw the end of the business cycle coming as the expansion was on the cusp of becoming the longest on record.
Then, the consumer showed up in a powerful way. As shown in the LPL Chart of the Day, consumer spending propelled output growth in 2019, while other sectors of the economy floundered. Gross domestic product (GDP) increased 2.4% on average in the first three quarters of the year, and the economy is poised for its third consecutive year of 2% growth. Continue reading
Daily Insights
Seasonal tailwinds. Seasonal tailwinds have carried stocks this late in December in the absence of other headlines. The S&P 500 Index has climbed 0.6% this week through Thursday, poised for its 11th weekly gain in 12 weeks. Stocks’ persistent rally over the past two months has pushed the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite to new highs. Technology shares’ recent run has been especially impressive: The Nasdaq Composite has closed at 10 consecutive record highs for the first time since 1997. Continue reading
Market Blog
December 26, 2019
It was hard not to stumble into a winner if you owned stocks in 2019. With just four trading days left in the year, the S&P 500 Index has returned over 31%, its best yearly return since 2013. Whether you owned diversified stock portfolios of growth or value stocks, small or large cap stocks, domestic or international stocks, the chances are good that you ended up with returns of more than 25% from your stock portfolios.
Daily Insights
Quiet December a contrast to 2018. With four trading days left until the New Year, markets continue to look to drift higher, with stocks set to open modestly higher this morning. The MSCI Asia Pacific Index rose 0.2% overnight while European markets remain closed for the holiday. The S&P 500 Index has moved higher eight of the last ten days and has not seen a move of more than 1% since October 11, 2019. Contrast that with 2018’s tumultuous December, which saw 10 moves of more than 1%, including declines of more than 2% on December 23 and 24. The market started a mighty rally from there as the tone shifted at the Federal Reserve, with the index up almost 40% over the ensuing year through Tuesday’s close.
Daily Insights
Bright spirits. It’s the week of Christmas, and investors’ spirits are bright. The S&P 500 Index has climbed 2.6% so far this month, poised for its best December since 2010. The calendar is quiet through the end of the year, and we’re now in one of the S&P 500’s strongest weeks historically. Since 1950, the S&P 500 has gained an average of 0.6% in the 52nd calendar week of the year.
Economic Blog
December 20, 2019
U.S. leading indicators for November came in flat compared to October, ending a three-month streak of declining values. While investors cheered the end to the skid, the reading was below consensus expectations for a 0.1% increase.
Daily Insights
Powering ahead. Stocks have powered through impeachment headlines this week, carried by seasonal tailwinds. The S&P 500 Index has climbed 1.2% this week through Thursday, poised for its 10th weekly gain in 11 weeks. The calendar is quiet through the end of the year, and we’re coming up on one of the S&P 500’s strongest weeks historically. Since 1950, the S&P 500 has gained an average of 0.6% in the 52nd calendar week of the year.