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.

 

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