Jobless Claims Beat Expectations | Daily Market Update

Thursday, May 13, 2021

Daily Insights

U.S. equities point toward a slightly higher open

  • Market participants consider the effects of Wednesday’s Consumer Price Index (CPI) report on corporate revenues and earnings.
  • The Nasdaq Composite is approximately 0.7% higher as market participants seek to take advantage of discounted growth names.
  • European equities are lower as the Euro Stoxx 50 is off by 3% during midday trading.
  • Most Asian markets finished in the red with Japan’s Nikkei off by almost 2.5%.

Jobless claims beat expectations

  • S. claims for unemployment insurance fell to 473k, beating estimates of 490k (source: U.S. Department of Labor).
  • The report represents a pandemic low, though claims from the previous report were revised slightly higher.

Still favor U.S. but the international equity outlook has continued to improve

  • The tremendous rally in U.S. stocks since March of 2020—this week notwithstanding—has prompted us and others to start looking for opportunities that aren’t pricing in so much optimism.
  • We continue to expect the U.S. dollar to weaken, which could boost non-U.S. stock returns.
  • The sector mix of the developed international equity benchmark (MSCI EAFE Index) is heavier in cyclical value sectors than the S&P 500 Index with a much smaller technology
  • Another reason to take a closer look at international is the recent resurgence of value stocks, as we discuss in today’s LPL Research blog.

New Street View video: What It’s Like To Go on CNBC

LPL Research Chief Market Strategist Ryan Detrick takes us on a behind-the-scenes look at what it is like to be featured on CNBC in the latest LPL Street View.

Technical update

Wednesday marked the worst day for the S&P 500 since February 25. The selling was broad based, with decliners on the New York Stock Exchange (NYSE) outnumbering advancers by more than 8:1, the worst reading since late October 2020. With support at 4118 broken Wednesday, the next levels of support are the 50-day moving average at 4049 followed by 3980.

LPL Research in the Media

LPL Financial Chief Market Strategist Ryan Detrick discussed Tuesday’s market weakness with CNN Business. You can read the article here.

Amazing Earnings Season: LPL Research Reacts

LPL Research raises its year-end S&P 500 Index fair value target range again in the wake of a stunning Q1 2021 earnings season. Learn more in this week’s Weekly Market Commentary.

A Record Breaking Earnings Season

On the LPL Market Signals podcast, Chief Market Strategist Ryan Detrick and Equity Strategist Jeff Buchbinder discuss the incredible earnings season, debate whether we’ve hit a peak in earnings and economic growth, and economic policies.



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