Sustainable Investing Review I Daily Market Update

Monday, February 22, 2021

Top Story

Sustainable Investing Year In Review

LPL Research reviews sustainable investing & its positive environmental, social & ESG impact with financial return. Find out more in today’s Weekly Market Commentary, available at 1 p.m. ET.

Daily Insights

Rising bond yields pressure stocks as Nasdaq 100 leads to the downside

  • European markets lower in midday trading.
  • Asian stocks mostly lower overnight, though Japan’s Nikkei 225 posted solid gains.
  • Commodity prices continue to climb; copper reaches highest level since 2011.

S&P 500 Index earnings for the fourth quarter leveled off

  • Earnings growth for the quarter is tracking to a 3.1% year-over-year increase, roughly 12 percentage points above January 1 levels.
  • Earnings estimates for 2021 have impressively increased 4% year to date and reflect 24% growth over 2020.
  • The communication services and energy sectors have seen the strongest upward revisions to 2021 estimates over the past month.

View enlarged chart.

Technical update

The Nasdaq 100 fell every day last week and is lower by more than 1% in early trading today as large cap technology shares lead markets lower. The index has not been below its 50-day moving average since November 3, 2020. Looking at the broader Nasdaq Composite, we see support in the range from 13,000-13,200.

COVID-19 news

The United States reported 58,000 new COVID-19 cases on Sunday, down 19% week over week, though it may take some time for weather-related testing disruptions to smooth out (source: COVID Tracking Project).

  • Those currently hospitalized with COVID-19 continue to plummet, falling under 60,000 for the first time since early November 2020.
  • Sunday also marked the first day of new hospitalizations under 1000 since October 2020.

 Week ahead

  • Tuesday—Consumer Confidence (Feb.), Federal Housing Finance Agency (FHFA) Home Price Index (Dec.).
  • Wednesday—Building permits and new home sales (Jan.).
  • Thursday—Weekly initial unemployment claims, pending home sales (Jan.), durable orders (Jan.), and revised Q4 GDP.
  • Friday—Personal income and consumption (Jan.), wholesale inventories (Jan.), and Sentiment from the University of Michigan (Feb.).
  • Midweek—Federal Reserve Chair Jay Powell will testify before Congress.
  • All week—Over 50 companies will report fourth quarter results throughout the week as we head toward the end of earnings season.

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.



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All index and market data are from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

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