Market Update: Wed, Feb 19, 2020 | LPL Financial Research

DAILY INSIGHTS

Coronavirus slows, travel restrictions ease. Futures are green around the globe this morning as the number of new coronavirus cases fell to the lowest daily increase since January 29 and the Chinese government stepped up its fiscal and monetary stimulus response. The number of new cases in mainland China (excluding Hubei) has now fallen for 15 straight days. In more good news, manufacturing hubs along the coast of China are finally starting to allow movement of people and traffic. The virtual shutdown of the second largest economy in the world has had crushing effects on supply chains, and this thawing of the stalled state is great news. 

Fed minutes on tap. Minutes from the recent Federal Reserve (Fed) Open Market Committee (FOMC) meeting will be released later today. It is widely expected the minutes won’t add any new insight into monetary policy, but many want to hear what the Fed has to say about the expanding balance sheet. The Fed has been adamant it doesn’t consider this a new round of quantitative easing (QE), but many economists might disagree.

Where does President Trump rank? How stocks and the economy have performed under various presidents and during election years have been very popular questions for us the past few months. In honor of Presidents’ Day, we took a closer look. The Dow has gained just under 50% since President Trump took office, with eight presidents since the late 1800s seeing larger gains. But on an annualized basis, the Dow did better under only Coolidge and Clinton. Read the full blog post here.

Corporate America has impressed. Companies’ performance this earnings season has impressed us. Despite slowing global economic growth, weakness in capital investment and manufacturing, a strong U.S. dollar, and a huge drop in energy sector profits, S&P 500 Index companies are grinding out a couple of percentage points of overall earnings growth. Today on the LPL Research Blog, we share some highlights of fourth quarter earnings season.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any 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 information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was 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 that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

If your representative 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- 953084