Thursday, March 11, 2021
The Nasdaq Composite leads U.S. stocks higher as the U.S. dollar weakens
- European markets are mostly higher in midday trading as the European Central Bank (ECB) pledges to increase the pace of bond purchases.
- Asian markets surged overnight with China outperforming.
Jobless claims continue their modest decline
Applications for U.S. jobless claims fell more than expected last week to the lowest since early November 2020.
- 712,000 Americans filed for unemployment insurance versus Bloomberg consensus forecasts calling for 725,000.
- Continuing claims fell to 4.1 million, also below the Bloomberg consensus forecast of 4.2 million.
OECD raises global growth forecasts; U.S. rebound continues to surpass expectations
- The OECD (Organisation for Economic Co-operation and Development) raised its 2021 gross domestic product (GDP) growth forecast for the United States by more than 3 percentage points to a very strong 6.5%.
- Our 5-5.5% forecast for U.S. GDP growth in 2021 may prove conservative.
- The OECD raised its global GDP forecast by 1.4 percentage points to 5.6%.
- Euro area GDP, which saw a much more modest increase (+0.3%) due to ongoing COVID-19 restrictions and slow vaccine distribution, is only expected to grow 3.9%.
- China’s forecast was little changed at a very strong 7.8%, while India’s forecast (12.6%) saw the biggest increase among major countries at 4.7 percentage points.
- The reopening of the U.S. economy continues to surpass expectations, giving global growth a boost and providing a favorable backdrop for global equity markets.
- Read more about OED forecasts in today’s LPL Research blog, available at 12pm ET.
Intermediate trends reemerged on Wednesday, as energy and financials led the S&P 500 Index to a 0.6% gain. The Russell 2000 and Dow outperformed, while technology, the only sector in the red, dragged the Nasdaq to a slight loss on the day. First tactical support for the Nasdaq is marked by the Friday intraday low at 12,397.
The U.S. reported 58,000 new COVID-19 cases on Wednesday (source: Our World In Data).
- 61% of the U.S. population over the age of 65 have been fully vaccinated.
- Exactly one year ago, the World Health Organization (WHO) declared the COVID-19 outbreak a pandemic.
Rising Rates And Stock Market Performance
LPL Research discussed the market signals supporting the potential for stock gains in the current rising rate environment. Read this week’s Weekly Market Commentary.
Why Higher Rates Aren’t Bad For Stocks
In this week’s Market Signals podcast and video, Chief Market Strategist Ryan Detrick and Equity Strategist Jeffrey Buchbinder discussed why higher rates historically haven’t been bearish for stocks and why they don’t think they will be this time either.
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 # 1-05120996