Market Update: Mon, Sept 21, 2020 | LPL Financial Research

Daily Insights

Pullback continues. Stocks opened lower this morning as the S&P 500 Index attempts to break its three-week losing streak that has left it more than 7% below its September 2 high. Political uncertainty following Justice Ruth Bader Ginsberg’s death has ratcheted higher and may be adding volatility on top of existing concerns about COVID-19, stimulus, US-China tensions, and tech stock valuations. European stocks were solidly lower, led down by banks. Hong Kong’s 2% loss paced broad losses in Asian markets overnight.

Recessions and recoveries. Chief Investment Officer Burt White explains what a K-shaped recovery means and how the ability to adapt may predict future successes in the new client-approved Street View video, Recessions and Recoveries Go Together.

Real-time data update. Checking in on some of the real-time economic data such as vehicle traffic, restaurant bookings, and electricity use appears to show a moderating rate of recovery as the battle against the COVID-19 virus continues. With the seasons changing from summer to fall, the potential impact of the weather on the path of the virus may begin to reveal itself. We take a closer look at several real-time indicators today on the LPL Research blog.

Week ahead. This week’s US economic calendar will bring August existing home sales and new home sales and September Purchasing Manager’s Index (PMI) from Markit on Wednesday. Initial jobless claims will be reported on Thursday, and August durable goods orders on Friday. In addition, Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin will testify before Congress on Tuesday and Wednesday.

Read, watch, and listen in the Newsroom. LPL Financial insights and updates to keep you informed, engaged, and inspired are now all in one place. Whether it’s the latest advisor updates, news, podcasts, or videos, you’ll find it on in the Newsroom.

Technical update. After a quiet open, US equities fell throughout Friday’s session, eventually pushing the S&P 500 into negative territory for the week. The index closed at 3319 and broke below its 50-day moving average for the first time since mid-April. While stocks are down sharply again in early trading, we see next technical support for the index near the 3200 range.

COVID-19 news. On Friday new cases hit a two-week high of more than 47,000 in the United States, lifting the seven-day average 17% higher than the prior week (source: COVID Tracking Project). Cases fell Sunday week over week, while hospitalizations edged lower and are 14% below where they started September. The United Kingdom may be considering fresh lockdown measures, and France also may be headed that way.

LPL Research in the Media

LPL Research Chief Market Strategist Ryan Detrick recently appeared on CNBC’s Squawk Box.



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 1-05057665