Three Things That Scare Us | LPL Daily Market Update

Friday, April 16, 2021

Top Story

Three Things That Scare Us

LPL Research Chief Market Strategist Ryan Detrick outlines three economic and market phenomenon that may have the potential to put the scare into even the most ardent optimist.

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Daily Insights

U.S. stocks little changed following Thursday’s record highs

  • European markets are modestly higher in midday trading with the German DAX
  • Asian stocks were higher overnight with China outperforming on the news their economy grew 18.3% year over year in the first quarter.

Technical update

The S&P 500 Index posted a 1.1% gain to close at another record high on Thursday. Real estate led all sectors with a 2% gain, boosted by a fall in interest rates that saw the 10-year Treasury yield hit its lowest level in over a month. The 10-year Treasury yield hasn’t closed below its 50-day moving average since August 21, 2020, but that metric sits just a few basis points below current levels at 1.50%.

COVID-19 news

The United States reported 74,000 new COVID-19 cases on Thursday, slightly higher than the 7-day average of 71,000 (source: New York Times).

  • Michigan continues to battle surging cases, accounting for more than 10% of new daily cases in the entire U.S.
  • Vaccinations continue to keep pace despite the pause of the Johnson & Johnson vaccine. The daily average of administered vaccines is hovering just north of 3 million.
  • 80% of the population aged 65 or older have received at least one dose of the vaccine, while just shy of 50% of the adult population has received at least one dose (source: CDC).

The Earnings Boom Is Here

The outstanding fourth-quarter earnings season we had in 2020 is a tough act to follow, but 2021’s first quarter has the makings of another potentially great earnings season. Learn more in this week’s Weekly Market Commentary.

Earnings Season Is Here

On the LPL Market Signals podcast, Chief Market Strategist Ryan Detrick and Equity Strategist Jeff Buchbinder discuss why they think another very solid earnings season is on the horizon.



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