Stocks open solidly higher on vaccine optimism. Stocks are adding to Tuesday’s rally on reports of a possible breakthrough in development of a coronavirus vaccine by United Kingdom and Chinese scientists that may substantially reduce the development time. The prior session saw the biggest one-day gain in the S&P 500 Index since August 2019. A flurry of earnings reports, central bank support globally, and Iowa caucus results are among other topics garnering attention this morning, while today’s economic calendar includes ADP private payrolls, which blew by expectations, and the Institute for Supply Management (ISM) report on the services sector at 10 a.m. ET.
Manufacturing on the mend? Monday’s strong manufacturing report caught our attention, even as the coronavirus outbreak dominated the financial media. At 50.9, the Institute for Supply Management’s (ISM) manufacturing purchasing managers’ index (PMI) for January moved into expansionary territory (above 50) for the first time since July 2019. We think investors should be paying attention to this positive development, even though one month does not make a trend. In today’s LPL Research blog we look at what the potential improvement in manufacturing could mean for stocks going forward.
How January went. When we consider the nature of recent stock market volatility amid spreading coronavirus fears, we have to wonder if January really will be predictive of the rest of the year. Find out what LPL strategists think in the new Market Signals podcast, As Goes January.
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 professional prior to investing. The economic forecasts set forth in this material may not develop as predicted.
U.S. Treasuries may be considered “safe haven” investments but do carry some degree of risk including interest rate, credit, and market risk.
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.
Fixed Income investments are subject to risks including market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates riska dn bonds are subject to availability and change in price.
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.
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 that is not an LPL affiliate, please note LPL 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 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 # 1-947301