DAILY INSIGHTS
Earnings standouts helping the Nasdaq. The broad S&P 500 Index opened lower this morning amid some skepticism about whether the rally off the March lows is fully justified, but the Nasdaq is getting a lift from well-received earnings results. Asian markets were higher overnight in tracking Wednesday’s gains in the United States, while European markets were broadly lower.
Economic Blog
The Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of Japan (BOJ) all met in the last week and while the show of power was minimal compared to recent weeks, they collectively reasserted their resolve to do whatever is necessary to support the global economy through the COVID-19 economic crisis. Rates are being held about as low as they can go, significant new programs to enhance market liquidity and support lending are in place, and, as shown in the LPL Chart of the Day, asset purchases have accelerated. In fact, with April not yet completed, central bank assets have risen over $3 trillion, the biggest two-month jump on record. Continue reading
Market Blog
One of the best known investment axioms is to “sell in May and go away.” This is largely because these six months have historically been some of the worst six months of the year. As you can see below, the next six months have tended to be on the weak side.
Market Blog
Over the past couple of weeks, we have thankfully witnessed new cases of COVID-19 in the US trending lower. Increasingly, we are also seeing governors implementing plans to re-open their state economies in phases. If the US economy continues to open up and economic growth starts to rebound, relative performance of stay-at-home growth stocks may level off or even reverse. Continue reading
DAILY INSIGHTS
Stocks up on Fed day. After Tuesday’s gains faded late in the session, stocks opened solidly higher this morning ahead of the Fed’s policy announcement scheduled for this afternoon. Market participants also have a wave of earnings news, first quarter gross domestic product (GDP) report, and positive news on Gilead’s COVID-19 treatment to digest. Asian markets were mostly higher overnight with Taiwan and Australia seeing sharp gains. European markets are mostly higher in midday trading. Continue reading
Economic Blog
The Conference Board’s Consumer Confidence Index (CCI) for April came in 86.9, falling more than 30 points from the prior month. The monthly drop was the biggest for the index since 1973, reflecting the severity of the economic impact of COVID-19 containment efforts. Continue reading
Market Blog
We continue to follow our Road to Recovery Playbook for help determining where the market is in its bottoming process and yesterday we upgraded Signal #1, confidence in timing of a peak in new COVID-19 cases, to “Already there.”
“Three of the five signals from our Road to Recovery Playbook are now in place,” said LPL Financial Equity Strategist Jeffrey Buchbinder. “With the S&P 500 Index more than 25% off its lows, stocks are no longer pricing in a recession and are no longer oversold from a technical analysis perspective, making the near-term risk-reward trade-off less favorable. We believe a more attractive entry point may emerge soon.” Continue reading
DAILY INSIGHTS
US markets continue to push higher. After closing at a multi-week high Monday, the S&P 500 is looking at a strong start this morning. There are no major news drivers other than continued planning around a staged reopening of the economy. Asian markets were broadly higher overnight, while European markets were showing strength at midday, with the US dollar weakening against major international currencies. Continue reading
Market Blog
Oil had a wild week last week, even turning negative on Monday, April 20, as worries about lower demand in a sharp recession and where to store the actual barrels of oil sparked a historic rout.
“The reality is oil isn’t worthless, but at these levels it’s a mixed bag. For consumers, lower oil means lower gas prices,” explained LPL Financial Chief Investment Officer Burt White. “But on the other side, Russia and OPEC have flooded the oil market with cheap barrels and driven prices sharply lower, which hurts the United States as the largest producer in the world.” Continue reading
DAILY INSIGHTS
Stocks opened solidly higher. The S&P 500 opened higher this morning despite another dip in oil prices as market participants appear to be taking cues from the beginning stages of re-openings and stimulus. The Bank of Japan removed its quota on government bond purchases and expanded its corporate-bond purchase program. Asian markets closed broadly higher, while across the pond, European markets are solidly in the green in midday trading. Continue reading