Friday, January 22, 2021
Stocks take a pause as investors reassess risk appetite
US stocks opened firmly lower after the S&P 500 Index reached another all-time high Thursday. European markets are lower in midday trading as the European Central Bank warns of a double-dip recession. Asian stocks were mostly lower with losses in Hong Kong leading the way.
Encouraging COVID-19 progress
With the rollout of multiple vaccines underway, there is a chance that many real-time indicators of COVID-19 have put in their final highs (or lows). Today on the LPL Research blog, we look at the latest trends in COVID-19 cases and hospitalizations as well as the impacts of restrictions based on some high-frequency data points.
Coming next week
- Monday: Market Signals podcast on the economy and stock valuations
- Tuesday and Wednesday: Federal Reserve meets
- Friday: SMA Flash Reports for Q4 2020
The S&P 500 Index was up 2.3% through Thursday’s close, but it’s giving back some of those gains in early trading. The Nasdaq has temporarily regained leadership in the past week, outperforming the Russell 2000 Index by 3.9% since January 14.
The United States reported 189,000 new COVID-19 cases Thursday, down 20% week over week (source: Johns Hopkins).
- The 7-day average of new cases is down 24% from its peak on January 8 (source: COVID Tracking Project).
- The surge of cases in Western Europe continues as Spain struggles to control case growth.
- The French government is discussing the possibility of a third national lockdown.
LPL Research in the Media
LPL Financial Chief Market Strategist Ryan Detrick joined Nasdaq Trade Talks to discuss markets.
Market Signals Covers It All
This week’s Market Signals podcast covers all the latest events impacting markets and the economy: Q4 earnings, a new stimulus proposal, the Democratic blue wave, and President-elect Joe Biden’s new economic policy plan. Watch Market Signals: More Stimulus, New Policies, and Stellar Earnings Season.
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