Market Update: Tues, Aug 11, 2020 | LPL Financial Research


New highs are close. Stocks opened higher in the United States as the S&P 500 Index could reach new all-time highs today, with Europe up big and gains in Asia as well. It’s a quiet news day, with hope that Congress will deliver on the next stimulus bill, better trends showing for COVID-19, and earnings season wrapping up one of the better seasons relative to expectations ever.

Win streaks in the air. The S&P 500 has gained for seven days in a row, the longest win streak since eight in a row in April 2018. In fact, not once during the seven-day win streak did the index gain more than 1%, the first time since October 2017 it has done that. Also, the Technology Select Sectors SPDR Fund (XLK) hasn’t been down three days in a row since early March. This computes to a record 107 trading days in a row without a three-day losing streak, topping the previous record of 106 days in April 2017. This shows how historic this run in technology has been.

Real yields on Treasuries remain very low. With real yields—based on US Treasury yields minus core consumer price inflation—investors are currently accepting negative returns after inflation on Treasuries across most of the yield curve. We continue to recommend an underweight allocation to Treasuries in fixed-income allocations.

Bond returns and Congress. In the past we’ve explored the trend of equity market returns and party makeup of the president and Congress, so we wanted to take a look at the potential impact to the other side of a conventional asset allocation. We investigate the returns of the bond market under various partisan regimes later today on the LPL Research blog.

COVID-19 news. New daily cases in the United States tumbled 15.6% on Monday compared with the prior week, while the seven-day average fell 12.5% to 52,300—the lowest since July 8. Hospitalizations have fallen to the lowest level since July 9 and continue to fall steadily (source: The COVID Tracking Project). Global cases surpassed 20 million after doubling in six weeks (source: Johns Hopkins). Russia President Vladimir Putin said Russia has registered the first COVID-19 vaccine. New Zealand reported its first local case in 102 days, according to Bloomberg.

LPL Research in the media. LPL Financial Chief Market Strategist Ryan Detrick was quoted in the AP and Investor’s Business Daily recently.



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 1-05043058