DAILY INSIGHTS
Stocks opened slightly lower. The S&P 500 Index is down slightly in early trading on a quiet day for economic data. Tuesday, market participants will focus on stimulus talks in Washington, United States and China tensions, earnings season, and COVID-19 trends. European markets are modestly lower, in-line with the United States in midday trading. Key Asian markets closed solidly higher across the board, tracking Monday’s strong US gains.
Second quarter earnings season. With over 60% of S&P 500 companies having reported, results have solidly bested expectations for the second quarter and forward estimates for the index have impressively risen.
Worst year for Treasuries—2009. Most of the worst years for 10-year US Treasury returns in the last 50 years aren’t surprising. Whether because of inflation or growth, the Federal Reserve was raising rates for all of them, except for one. The good news is that 4 out of 5 of the worst years were mid-to-late cycle, not where we are today. But the worst year, 2009, has some eerie similarities with where we are now. Still, we think there are more powerful forces in play now to help keep a lid on rates. For more on the worst years for Treasuries and what it might tell us about today’s Treasury market, see today’s LPL Research blog.
COVID-19 news. New cases in the United States fell 19.2% over the past week to 45,600, while the seven-day average fell 7.6% through Monday (source: Johns Hopkins). Hospitalizations continued to trend lower in second-wave states across the South and West. The curve has been bent lower nationally, but several states, including Maryland, Montana, and Virginia, have seen an increase. New case trends appear to be flattening out in Europe, but cases continue to rise in Germany, Spain, the Netherlands, and Belgium. Infections reached a record in the Philippines.
LPL Research in the Media
LPL Research data was quoted on CNBC.com, while LPL Financial Chief Market Strategist Ryan Detrick was quoted in MaketWatch discussing gold.
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 1-05040354