Market Update: Mon, Jul 13, 2020 | LPL Financial Research


U.S. stocks opened higher. US stocks continue to shrug off rising COVID-19 cases as markets focus on the strength in stay-at-home stocks (mostly technology), optimism around virus treatments, and Americans’ will to avoid locking down again. The S&P 500 Index is within a small fraction of moving into positive territory for the year. The MSCI Asia Index gained 1.2% overnight, led by Japan’s Nikkei gain of 2.2% and 1.8% for China’s Shanghai Composite. European stocks are up over 1% in midday trading in London.

Earnings season kicks off. The unprecedented nature of the lockdowns and widespread withdrawal of corporate guidance has set up an earnings season that is difficult to predict. Second quarter guidance has been better than average—45% has been positive. Recent economic data has mostly exceeded expectations, pointing to potential upside to FactSet’s consensus estimates, which are calling for a more than 40% year-over-year decline in S&P 500 earnings.

Week ahead. Besides the start of earnings season, this week’s economic calendar includes consumer inflation on Tuesday, the Federal Reserve’s Beige Book on Wednesday, retail sales for June on Thursday, and some housing data on Friday. The international calendar includes European Central Bank and Bank of Japan policy meetings and China second quarter gross domestic product.

The comeback continues. July’s Global Portfolio Strategy: The Comeback Continues reviews the markets and economy for the month of June and gives LPL Research’s insights on what to expect next in equities, fixed income, and more. At your request, we’ve added back a column showing trends in equity asset classes and sectors. The July GPS is available now on the Resource Center.

Midyear Outlook 2020 launches July 14. LPL Research’s Midyear Outlook 2020: The Trail to Recovery reviews where we’ve been in 2020, where we may be heading, and the path that will take us there. Our special elections section explains how stocks and the economy may predict the next president. More information is in today’s LPL Research blog.

No Weekly Market Commentary on July 13. LPL Research will not publish a Weekly Market Commentary this week so we can focus on Midyear Outlook 2020, which publishes Tuesday, July 14. Weekly Market Commentary will resume July 20. We look forward to sharing Midyear Outlook 2020 with you.

COVID-19 news. Total new daily cases in the United States remained at record highs of more than 60,000 over the weekend, according to Johns Hopkins data. Florida’s more than 15,000 new cases on Sunday eclipsed the US record for one state during the crisis. New York reported no new COVID-19 deaths for the first time in four months. Pfizer and BioNTech received FDA fast-track approval for their vaccine candidate



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.

All index and market data are from FactSet and MarketWatch.

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 1-05032158