Market Update: Thursday, July 19, 2018

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Daily Insights

  • Business confidence holding up well amid escalating trade tensions. Business confidence remains strong based on the latest survey data from the National Federation of Independent Business. The percentage of small business owners indicating it is a good time to expand dipped slightly from May to June but remains above the peaks of the past three decades. Strong data from the Institute for Supply Management tells the same story, even though all Federal Reserve (Fed) districts cited concerns about the continued tightening of the labor market, inflationary pressures, and tariffs in the Fed’s Beige Book.

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Market Update: Tuesday, July 17, 2018

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Daily Insights

  • Solid week for economically-sensitive fixed income. High yield, emerging markets debt (EMD), and bank loans all performed well (as measured by the Bloomberg Barclays Capital High Yield, JP Morgan Emerging Markets Bond Global, and the S&P/LSTA US Leveraged Loan indexes, respectively) last week alongside solid equity market returns. The continued recovery in EMD bodes well for trade tension fears, as the asset class was previously hit hard by concerns over trade skirmishes and a strengthening dollar. Investment-grade corporates also continued to recover, as fears about interest rate risk and anticipated heavy issuance due to merger and acquisition activity are relenting after pressuring the asset class early in the year.

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Market Update: Friday, June 29, 2018

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Daily Insights

  • Welcome to the third quarter. Historically the third quarter can be tricky for stocks, but especially so during a midterm year. In fact, going back to 1896 and the start of the Dow, this is the second worst quarter of the four-year presidential cycle. Could we be in for trouble this time around? We address this important question today on the LPL Research blog.

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Weekly Update 6/15/2018 – Central Banks Overshadow U.S.—North Korea Summit

US: S&P 500 Index +0.0%, Dow -0.9%, Nasdaq +1.3%
Europe: STOXX Europe 600 +1.0%, German DAX +1.9%, France CAC 40 +1.0%, U.K. FTSE 100 +1.1%
Asia: Japan Nikkei +0.7%, China Shanghai Composite -1.5%, Korea KOSPI  -1.9%
Global/Regional: MSCI ACWI +0.1% MSCI EM -0.9% MSCI EAFE +0.2%
Rates/Commodities: 10-Year Treasury yield -2 basis points to 2.92%, WTI crude oil -1.6%, COMEX gold -1.4%

Major U.S. indexes went their separate ways this week as the S&P 500 Index (flat), Nasdaq (rose), and Dow (fell) all reacted differently to a plethora of headline-generating events. Continue reading