Market Update: Fri, Oct 23, 2020 | LPL Financial Research

Daily Insights

Stocks bounce to end the week. US stocks are extending gains seen in the second half of Thursday’s session.

  • European markets are showing broad-based gains.
  • Asian markets had a mixed session.

Election 2020 client presentation. A new client presentation with two dozen of our election-specific charts is available on LPL Research’s Election 2020 page.

Leading indicators show growth is moderating. The Conference Board released its Leading Economic Index (LEI), which revealed that the blistering pace of economic growth seen during the summer is slowing as we enter the fourth quarter. While the economy doesn’t appear to be at risk of contracting, the LEI results may touch on the importance of additional fiscal stimulus to maintain consumer confidence. We take a closer look at the LEI later today on the LPL Research blog.

Election 2020 update. Thursday night’s final presidential debate included new debate rules to help create a more organized discussion, but it’s unlikely to move the needle much. With just 12 days remaining until the election, a remarkable 50 million Americans have already cast their ballot as of October 23, amounting to roughly 36% of the total vote in 2016 according to the US Elections Project. With such a high early voter turnout, the debate may have less of an impact as past debates.

Technical update. The S&P 500 Index has tested support at 3425 each day this week, holding every time. Thursday the index briefly traded to its lowest level since October 7 before reversing course and gaining 0.5%. Small caps outperformed again. The Russell 2000 Index gained 1.7% and has now outperformed the S&P 500 by 5.4% in October.

COVID-19 news. New daily cases in the United States rose 21% week over week, pushing the seven-day average up to near 61,000, a 14% increase over the prior week (source: COVID Tracking Project). The seven-day average number of hospitalizations rose 7.5% to a two-month high, and COVID-19 deaths rose to a one-month high near 1,200. The Food and Drug Administration (FDA) approved Gilead Sciences’ remdesivir (under the brand name Veklury) for COVID-19 patients requiring hospitalization.



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 1-05070791