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.
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