LPL Research on SiriusXM Radio. LPL Financial Senior Market Strategist Ryan Detrick is scheduled to be a guest today, April 17, on the “Behind the Markets” radio show with Professor Jeremy Siegel and Jeremy Schwartz for a full hour, 12–1 p.m. ET. You can listen live on SiriusXM Satellite channel 132 or for free here.
Big open. Stocks gapped significantly higher today, as Gilead’s new antiviral drug to combat COVID-19 showed promise at a Chicago hospital. Globally, stocks were firmly in the green as well, with optimism for opening up global economies growing.
Good news Friday. President Trump announced a three-step process for the United States to open up over time, giving states the ability to open on their own terms, as long as the guidelines are followed. Besides the Gilead news, Boeing announced it would begin building planes in Seattle as soon as next week.
China’s first GDP contraction on record. First quarter gross domestic product (GDP) in China contracted 6.8% year over year, near the consensus forecast of a 6.5% decline. Industrial production held up relatively well, falling 1.1% in March, while fixed asset investment shrank 16% and retail sales dropped 15.8%. Chinese officials also noted the outbreak has been stopped and the operational resumption is accelerating, highlighting its economy’s place as a leader out of this global crisis.
Did fixed income ETFs pass the test? The fastest bear market decline ever and accompanying disruptions in credit markets in March provided a tough test for exchange-traded funds (ETFs). With a big assist from the Federal Reserve, which announced it would purchase fixed income ETFs, and increasing optimism around an economic rebound, fixed income ETFs seem to be functioning normally again as we discuss today on the LPL Research blog.
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.
- 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 1-00983982