DAILY INSIGHTS
Some weakness. Stocks in the United States opened lower, following global markets in the red. This comes on the heels of a strong run, with the Nasdaq on an eight-day winning streak. Concerns over spreading COVID-19 cases and attention to US-European Union (EU) trade are putting a damper on things. Continue reading
DAILY INSIGHTS
Global stock markets rebound from overnight declines. S&P 500 Index futures were down nearly 1.5% overnight after a key advisor to President Trump expressed uncertainty about the China trade deal, but they swung back to gains following reassurances by the president and positive manufacturing data out of Europe. The MSCI Asia Pacific Index moved higher overnight, while the Euro Stoxx 600 Index was up over 1% at midday. Continue reading
Economic Blog
What can we learn about investment income opportunities from coupon-clipping environments? From 1977 to 2019, the price of the Bloomberg Barclays US Aggregate Bond Index rose in 22 calendar years and fell in 21 years, but, adding in the index’s coupon income, the index rose in 40 of 43 years. (The down years were 1994, 1999, and 2013.) Continue reading
Market Blog
The US economy has made impressive progress in recent weeks. As the economy re-opens, the way we assess the recovery has changed. In March and April, we were looking for evidence that growth in COVID-19 cases was decelerating—which thankfully it did—along with evidence that a recession was priced into stocks and that stimulus measures were sufficient to get us through the crisis. Continue reading
Economic Blog
The Citigroup Economic Surprise Index, or CESI, tracks how the economic data fare compared with expectations. The index rises when economic data exceeds Bloomberg consensus estimates and falls when data is below forecasts. The CESI has had a volatile year in 2020, as the effects of lockdowns in response to the outbreak of COVID-19 significantly impacted the global economy. As shown in the LPL Chart of the Day, following an all-time low in April, the index has skyrocketed to a new all-time high as the economy’s reopening process continues. Continue reading
DAILY INSIGHTS
Stocks opened little changed. Investors continue to weigh the economy’s reopening and stimulus support against increasing COVID-19 cases in southern and western states. Asian markets were mixed overnight with Hong Kong among the laggards on China tensions. European markets are lower in midday trading. Continue reading
Market Blog
Index Performance – Week ending 6/19/2020
S&P 500 Index: 1.9%
Dow Jones Industrial Average: 1.0%
Nasdaq Composite: 3.7%
Economic Blog
Yesterday, The Conference Board released last month’s reading for its Leading Economic Index (LEI), a composite of leading data series, which showed a month-over-month increase of 2.8%. As seen in the LPL Chart of the Day, the return to positive territory follows three straight months of negative monthly growth. Continue reading
DAILY INSIGHTS
Stocks up again. Stocks in the US opened higher to end what could be a strong week after losses last week. Bloomberg reported China plans to accelerate US agriculture purchases on an otherwise light news day. Spikes in COVID-19 cases continue in several southern and western US states as the reopen continues and economic data improves. Asian markets gained ground, while European markets were showing green in midday trading. Continue reading
Market Blog
Stocks have shaken off the 5.9% S&P 500 Index drop last Thursday by gaining three days in a row before yesterday’s modest weakness. While researching and reading this week, three charts stood out that tell us quite a good deal about how investors have reacted during this volatile market and what could be next. Continue reading