Market Update: Wed, Dec 18, 2019 | LPL Financial Research

Daily Insights

Drifting higher. U.S. stocks are searching for direction this morning as 2019 winds down and trade headlines dissipate. Equities could continue drifting higher on seasonal tailwinds, as the second half of December historically has been one of the strongest periods for the S&P 500 Index. Since 1950, the S&P 500 has rallied an average of 0.4% weekly in the last three calendar weeks of the year.

Record highs. Stocks have put on an impressive show so far this year. The S&P 500 has climbed 27.4% year to date, heading for its best annual performance since 2013. The benchmark has notched 30 record-high closes along the way, including four consecutive record highs through Tuesday. The S&P 500 hasn’t posted five straight all-time highs since January 2018, so we’ll be watching to see if this drought ends.

Repo market worries. The year isn’t quite over in the short-term lending market, though. The repo market has tended to fluctuate more toward quarter-end, and investors are nervous that we could see a repeat of September’s repo-market volatility. We’ll provide an update on the repo market in today’s LPL Research blog, and weigh in on recent concerns that the repo market could be signaling a more significant meltdown in financial markets.

 

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.

The modern design of the S&P 500 stock index was first launched in 1957. Performance back to 1950 incorporates the performance of the predecessor index, the S&P 90.

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.

If your advisor is located at a bank or credit union, please note that the bank/credit union is not registered as a broker-dealer or investment advisor. Registered representatives of LPL may also be employees of the bank/credit union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, the bank/credit union. Securities and insurance offered through LPL or its affiliates are:

Not FDIC or NCUA/NCUSIF Insured | No Bank or Credit Union Guarantee | May Lose Value | Not Guaranteed by Any Government Agency | Not a Bank/Credit Union Deposit

 

Member FINRA/SIPC

For Public Use – Tracking # 1-929082