Thursday, March 4, 2021
Global Vaccinations: More Shots = Less COVID-19
The global COVID-19 vaccination rollout is happening at varying speeds in different countries but data seems to be showing that the shots in arms are working in the fight against the disease. We take a closer look at some countries ahead of the curve on the vaccine deployment and the reasons that some are still behind in today’s LPL Research blog.
US stocks little changed after closing near session lows for the second straight day
- Futures pared earlier losses after better-than-expected jobless claims.
- European markets are modestly lower in midday trading with the United Kingdom leading to the downside.
- Asian stocks were weaker overnight as selling pressure on US technology stocks spilled over to Asian markets.
Jobless claims beat estimates
- The Department of Labor reported 745,000 Americans filed for unemployment insurance last week, below FactSet consensus estimates of 750,000, but slightly higher than the prior week’s 730,000.
- Continuing claims were also a notch lower than estimates, with 4.295 million Americans remaining on unemployment insurance versus FactSet Consensus of 4.3 million.
- There has been a modest improvement in the US labor market, and Friday’s nonfarm payrolls release will provide a better picture of current conditions.
Strong global manufacturing trends continue
- The global manufacturing PMI rose from 53.6 to 53.9 in February, solidly expansionary and at a three-year high.
- Among the major economies, manufacturing PMIs for the Eurozone, UK, Brazil, Russia, and Japan all rose.
- China’s PMI remains over 50 after edging lower, suggesting growth may be slowing.
- The US index fell slightly but remains at a very strong 58.6 level.
- Lengthening supplier delivery times and supply shortages—including semiconductors—pushed prices higher and will likely prove temporary.
- Large cap technology names dragged major benchmarks lower yesterday. Despite the S&P 500 Index falling 1.3% and the Nasdaq dropping 2.7%, the energy sector gained more than 1.4% and financials and industrials also ended the day in the green.
- The Nasdaq Composite closed Wednesday near support at 13,000, but a move lower today may set up a test of the 12,050 level.
The United States reported 67,000 new COVID-19 cases on Wednesday, down 8.8% week over week (source: COVID Tracking Project).
- The 7-day average of new cases continues to flirt with crossing below the 60,000 mark.
- Those currently hospitalized with COVID-19 continues to decline, extending its streak to 51 consecutive daily declines.
Yield spike spooks stock investors
In this week’s Market Signals podcast and video, LPL Research discusses soaring yields last week and examines the recent record breaking earnings season, plus updates from the Federal Reserve.
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 # 1-05118213