Market Peak Lessons I Daily Market Update

Friday, February 19, 2021

Top Story

What have we learned since last year’s market peak? Today marks exactly one year from the peak for the S&P 500 Index before markets began to reflect the future impact of COVID-19, triggering the fastest bear market in history. As a surprise to many, the S&P 500 climbed back to new all-time highs less than six months later. We take a look at the lessons learned in today’s LPL Research blog.

Daily Insights

US stocks open higher looking to snap three day losing streak

  • European markets mixed in midday trading. United Kingdom retail sales plummet after long national lockdown.
  • Asian stocks mostly higher with China outperforming for the second straight day after returning from the Lunar holiday.

Technical update

  • The S&P 500 Index closed lower for the third straight day, but continued the trend of closing well off the intraday low.
  • Traders have found shelter in large cap equities this week, outperforming small caps by roughly 2.5%.
  • Treasury yields continue their advance higher, with the 10-year Treasury yield opening this morning at the highest level since February of 2020.

COVID-19 news

  • The United States reported 67,000 new COVID-19 cases Thursday, down 35% week over week (source: COVID Tracking Project).
  • Cases are up modestly from the weather-related disruptions earlier in the week, but still below the 7-day average of 73,000.
  • Those currently hospitalized with COVID-19 continues to decline, down to 62,000.
  • Israeli study shows the Pfizer/BioNTech vaccine reduced COVID-19 infections by 85%, intensifying the debate that delaying the second shot can improve availability of initial supply of the vaccine.

Market Signals Podcast: Finding Yield In A Low Yield World

LPL Financial Research Chief Market Strategist Ryan Detrick and LPL Financial Equity Strategist Jeff Buchbinder discuss some under-the-radar ideas to add income to your portfolio in a low yield environment in this week’s Market Signals podcast.

 

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.

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