Leading economic indicators finally received the jolt we have been expecting.
The Conference Board’s Leading Economic Index (LEI), a composite of leading data series, rose 0.8% month over month in January, ending a string of lethargic readings. As shown in the LPL Chart of the Day, the LEI rose 0.9% year over year, signaling a potential bottom in the series and pointing to economic growth. Continue reading
Investors on edge. We’ve seen signs of complacency among investors in recent weeks, but Thursday showed how investor anxiety can spike quickly. The S&P 500 Index has traded in a range of less than 2% the previous seven days, but on Thursday the VIX Index (CBOE Volatility Index) jumped more than 20% intraday before the S&P 500 recovered most of its losses.
The Federal Reserve (Fed), and central banks globally, have been fretting over low inflation for years, but extraordinary central bank efforts to push inflation higher have not had much success achieving the desired effect, and may have come with unintended consequences. Continue reading
Stocks are lower amid virus headlines. Market participants remain focused on the latest coronavirus news coming out of Asia this morning. The 1.8% jump in the Shanghai Composite Index overnight, following Wednesday’s rally to another fresh record high for the S&P 500 Index, reflects some level of optimism toward containment, in our view.
The recent news that technology giant Apple would miss its fourth quarter 2020 revenue targets has understandably increased investor anxiety surrounding the potential economic impact of the coronavirus (now called COVID-19). Lost in those headlines is corporate America’s impressive performance this earnings season. Continue reading
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. Continue reading
We hope everyone had a nice Presidents’ Day yesterday, and by nice we hope you got the day off work!
In honor of George Washington, starting in 1971, the third Monday in February was originally celebrated as a Federal holiday to honor our country’s first president, but over time the day has changed to honor all the US presidents. Continue reading
Stock markets modestly lower after renewed coronavirus concern. Apple’s announcement that the coronavirus would impact sales had international markets striking a cautious tone overnight, with the technology sector getting much of the attention. The MSCI Asia Pacific was down just over 1%, while major European indexes and S&P 500 Index futures have posted smaller losses. Continue reading
We continue to receive many questions about stock and economic performance during election years, which we’ve tackled in our recent blogs, “Another Look at Election Years” and ”A Closer Look at Election Years.” Continue reading
Equities grind higher. The S&P 500 Index is tracking toward another weekly gain, following last week’s more than 3% advance. We see technical support for the S&P 500 at the 50-day moving average (about 4% below current levels) as well as the 3030 level, but the technicals of other key markets need watching as well. Continue reading