Stocks edge lower as coronavirus remains in focus. After the biggest weekly gain for the S&P 500 Index in eight months, the major averages are starting this week with modest losses. Investors remain squarely focused on the future path of the coronavirus outbreak. Markets appear to be pricing in a fairly optimistic containment scenario—let’s hope they’re right. European markets are lower in midday trading overseas, while Asian markets ended mixed—China’s Shanghai Composite gained 0.5% while Japan’s Nikkei and Hong Kong’s Hang Seng each lost about one half percent.
Earnings season rolls on. With 325 S&P 500 companies having reported, fourth quarter 2019 S&P 500 earnings growth is tracking to a 0.7% year-over-year increase, up about 1% over the past week. Earnings estimates have held firm despite the coronavirus outbreak’s impact on Chinese economic output and China-tied supply chains. S&P 500 earnings consensus earnings per share (EPS) estimates for 2020 have fallen just 0.6% since December 31 (source: FactSet), helping to solidify the earnings outlook amid progress on trade and evidence of stabilizing global growth in recent months. Earnings season continues this week with 66 S&P 500 companies slated to report.
The week ahead. This week’s U.S. economic calendar features key data points on inflation and consumer spending. The consumer price index (CPI) will come Thursday, with core CPI expected at 2.2% per Bloomberg consensus, down from 2.3% in January. On Friday, January retail sales will be reported, with consensus at 0.3% month over month (source: Bloomberg). Meanwhile, Federal Reserve Chair Powell provides congressional testimony and New Hampshire Democratic primary voters head to the polls.
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.
- 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 # 1-949126