DAILY INSIGHTS
Down again. US stocks opened lower following Thursday’s broad weakness. Caution is in the air, as China retaliated by shutting down the US consulate in Chengdu. Asian markets were down significantly on the news. European markets are firmly in the red, even though the Eurozone flash manufacturing Purchasing Managers’ Index (PMI) surprised to the upside. The composite reading reached its best levels since February, yet another sign of global economic improvement.
No fiscal stimulus yet. Congress has not yet finalized a COVID-19 relief bill and likely won’t until next week now, according to CNBC. Senate Majority Leader Mitch McConnell said Republicans and the White House agreed in principle to the package, but need more time to review the details. With the $600 a week unemployment benefit set to expire next week, the clock is ticking, but we continue to expect a final deal by the summer recess on August 7.
LEI rises for second straight month. The Conference Board released its Leading Economic Index (LEI) report for June on Thursday, showing the series rose 2%. This is a historically impressive monthly reading, but there is still much work to be done on the economic recovery. We examine the data release, as well as its implications for future economic growth, in further detail on the LPL Research blog.
COVID-19 news. New cases in the United States totaled just under 69,000 on Thursday, down 11.1% from a week ago, though on 6.1% fewer tests (source: Johns Hopkins). The stability in the seven-day average of new daily cases—up 1.4% week over week—suggests the curve may have been flattened. The uptrend in hospitalizations has started to level off, and fatalities should follow the same path.
IMPORTANT DISCLOSURES
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 1-05036895