Global indexes pause ahead of a busy week. U.S. stocks and global indexes are down modestly this morning as markets await a busy week of Federal Reserve (Fed) speakers. Fed Chair Jerome Powell will give his semi-annual testimony before House and Senate committees tomorrow and Thursday, respectively. Continue reading
The S&P 500 Index gained 17.4% during the first half of 2019, the best start to a year for the stock market since 1997, and its tenth-best start since 1950. “It’s tough to be critical of this market after such a strong start to 2019, but we would prefer that stocks were less reliant on monetary policy support from the Fed,” said LPL Chief Investment Strategist John Lynch. “At some point that support won’t be there, and traditional economic and market fundamentals will matter much more, although maybe not quite yet.”
Stocks opened slightly lower. Market participants are digesting the implications of the strong June jobs report again today as many return from vacations. Continue reading
What Might Stop Stocks From Continuing Their Ascent?
US: S&P 500 Index +1.7%, Dow +1.2%, Nasdaq +1.9%
Europe: STOXX Europe 600 +1.4%, German DAX +1.4% France CAC 40 +1.0%, U.K. FTSE 100 +2.4%
Asia: Japan Nikkei +2.20%, China Shanghai Composite +1.1%, Korea KOSPI -0.9%
Rates/Commodities: 10-Year Treasury yield +4 basis points to 2.04%, WTI crude oil -1.3%, COMEX gold: -1.3%
In a holiday-shortened week due to the observance of Independence Day, stocks posted yet another strong week of gains on the back of increasingly positive sentiment following the G20 Summit in Japan, pushing the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average to new all-time highs. Continue reading
Nonfarm payrolls climbed a solid 224,000 in June, well above consensus expectations calling for 160,000 new jobs and a strong rebound from the weak May report that showed just 72,000 jobs created (revised down from 75,000). Employers have added jobs for 105 straight months, by far the longest streak of job creation on record.
Payrolls bounce back. The U.S. job market bounced back last month after a weak May. Nonfarm payrolls rose 224K in June, beating consensus estimates for a 160K gain. Continue reading
“If you’re looking for something to discuss at your barbecue while watching fireworks, be sure to mention this is now the oldest economic cycle in history at 121 months old,” explained LPL Senior Market Strategist Ryan Detrick. That’s right, this cycle just topped the previous record of 120 months from the 1990s technology boom.
Shortened market session today, U.S. markets closed tomorrow for July 4 holiday. Trading is expected to be light when markets reopen on Friday, both a summer Friday and a bridge day from the holiday to the weekend. The U.S. jobs report for June will be released on Friday, and any large surprise may create more volatility than it usually would due to light volume. Continue reading
The 10-year Treasury yield has been flirting with dipping below 2% throughout the later half of June and into the start of July. As our LPL Chart of the Day, Will Trade Truce Help 2% 10-Year Treasury Yield Hold?, shows, the yield has not ended the day below 2% since November 2016, and it reached its cycle low of 1.37% almost exactly three years ago on July 8, 2016.
Stocks pause after rally. Asian and European shares were modestly higher overnight and S&P 500 Index futures sit around flat pre-market as market participants evaluate the potential for more concrete developments on trade. Continue reading