Market Update: Tues, Dec 3, 2019 | LPL Financial Research

Daily Insights

Stocks slide. Stocks are sliding again this morning on reports of President Trump’s indications that he has “no deadline” to reach a limited trade agreement with China. Those reports could decrease the likelihood of a delay in an upcoming tariff hike scheduled to take effect on December 15. The S&P 500 Index appears to be heading for its first two-day slide since 2017 to kick off December. Monday, stocks took cues from other negative trade headlines and disappointing manufacturing data.

Mixed manufacturing data. The Institute for Supply Management’s (ISM) manufacturing Purchasing Managers’ Index (PMI) fell to 48.1 in November, the second-lowest reading of the economic cycle. ISM’s index of new orders, a leading indicator of manufacturing health, slid to its lowest level of the cycle, indicating the weakness could continue. On the other hand, Markit’s manufacturing PMI climbed for a third straight month to 52.6. We watch the ISM gauge of manufacturing closely, as historically it has dropped below 50 (the threshold between contractionary and expansionary territory) during economic slowdowns. The ISM PMI has now closed below 50 for four straight months.

NEW Street View Video. Watch Chief Investment Strategist John Lynch introduce Outlook 2020: Bringing Markets Into Focus — your guide for the year ahead.


NEW Market Signals Podcast.
Season 3 has begun! Thank you for listening and being a part of our podcast. Listen to John Lynch and Ryan Detrick discuss Outlook 2020, and check out our new podcast videos via @RyanDetrick.

LPL Research on Yahoo! Finance. LPL Financial Senior Market Strategist Ryan Detrick was on Yahoo! Finance yesterday to discuss LPL’s 2020 Market Outlook. You can watch the full interview here.

 

IMPORTANT DISCLOSURES

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 # 1-922832