Monday, March 22, 2021
The Second Year Of The Bull Market Begins
LPL Research discuss the end of the bear market and the trends of a bull market in year two in this week’s Weekly Market Commentary, available at 1 p.m. ET.
U.S. stocks open higher to begin the week with Nasdaq leading as yields dip
- European markets are mixed in midday trading.
- Asian stocks finished mixed overnight, with Japan under pressure amid concerns over chip shortage.
- Plunge in the Turkish Lira dominated headlines over the weekend after its president removed the country’s central bank chief.
The following economic data is slated to be released this week:
- Monday: National Association of Realtors (NAR) existing home sales (Feb.)
- Tuesday: U.S. Census February building permits, new home sales, and Q4 current accounts
- Wednesday: Durable orders (Feb.), Markit PMI Manufacturing and Services reports (Feb.)
- Thursday: Weekly initial and continuing claims, revised Q4 GDP
- Friday: Personal consumption expenditure and Income report and wholesale inventories (Feb.)
The S&P 500 Index ended last week with a slight loss, but still managed several record high closes early in the week. Markets are little changed in early trading, but the Nasdaq is leading to the upside. 13,607 is the key resistance level to watch for the Nasdaq Composite.
The United States reported 33,000 new COVID-19 cases on Sunday, down 13% week over week (source: Johns Hopkins).
- New case growth remains more concentrated in northern states with cooler weather, with Michigan in particular seeing cases triple over the past month.
- Hospitalizations and deaths in the U.S. continue to decline thanks to vaccination efforts, as more than 20% of the population has received at least one dose of the vaccine.
- Cases in Western Europe (ex-United Kingdom) continue to climb, prompting several countries in the region to extend or increase restrictions on activity.
- U.S. clinical trial finds the vaccine developed by AstraZeneca to be 79% effective in preventing COVID-19. The vaccine has come under scrutiny by many European countries and the results were better than expected.
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