Daily Insights
New LPL Market Signals Podcast. In this week’s episode of the Market Signals Podcast, LPL Financial Chief Investment Strategist John Lynch and Senior Market Strategist Ryan Detrick cover recent economic data, the Fed’s latest action on rate hikes, and potential market gains. Subscribe to the free Market Signals podcast series on iTunes, Google Play, Spotify or wherever you get your podcasts!
LPL Research on CNBC. Chief Investment Strategist John Lynch was on CNBC’s Squawk Box this morning discussing market and economic drivers to watch. View the full interview here.
Daily Insights
Update on Trade negotiations. High-level negotiations between U.S. and Chinese officials concluded late last week. Reports and interviews with top officials suggest progress was made, but enforcement remains a key concern as history suggests China could be quick to agree but slow to implement the terms of a treaty. As a result, uneven headlines are likely to continue, and existing tariffs may very well remain in place after the March1 deadline, though indications are that Presidents’ Trump and Xi are likely to meet at the end of the month, which suggests sufficient progress is being made to warrant their meeting.
LPL Research on Yahoo! Finance. Senior Market Strategist Ryan Detrick was on Yahoo! Finance yesterday talking Super Bowl and stocks. Watch the full interview here, and view the related LPL Research blog post from last Friday here.
Daily Insights
Technical update. The equity bounce continues, with most equity indexes up at least 1% this week. In fact, the Dow has a shot at being up 6 weeks in a row. Technically, the S&P 500 Index continues to consolidate above its 50-day moving average, but potential resistance lies just ahead of the 200-day moving average near 2,740. We are extremely encouraged by the now 15% bonce since the December 24th low, but things are quite stretched and some type of potential correction would be perfectly fine and healthy. Continue reading
Daily Insights
We maintain our cautious tactical view of European equities amid lackluster economic growth and political uncertainty. Euro-area gross domestic product (GDP) rose just 0.2% during the fourth quarter, or 1.2% year over year, with Italy falling into recession and Germany, amid auto sector weakness, coming very close. Continue reading
Daily Insights
Fed day. All eyes are on the Federal Reserve’s (Fed) interest-rate announcement and press conference today for signals on future policy after a volatile December. Fed fund futures are pricing in about a 70% probability that the central bank will keep rates unchanged in 2019, while the Fed’s December dot plot shows policymakers expect two rate hikes this year. Continue reading
Daily Insights
Treasury yields steady following new issuance, ahead of Fed meeting. Treasury yields are little changed this morning following an $81 billion round of two-year and five-year note issuance that pushed the short-term rates up four basis points from Friday’s close but saw healthy demand. Continue reading
Daily Insights
Good growth, little upside. With 112 S&P 500 Index companies having reported results, fourth quarter earnings growth for the S&P 500 is tracking to a 14.3% year-over-year increase, 1.5% below expectations as of January 1, 2019 on beat rates slightly below recent trends. Continue reading
Daily Insights
Markets little changed during holiday-shortened week. With stocks moving higher in early trading Friday, major indexes in the U.S. are tracking towards a relatively flat week following the Martin Luther King Jr. holiday. While the S&P 500 Index has spent the week consolidating gains within its expected resistance zone of 2600-2650, last Friday saw more than 70% of components reach a new 20-day high. Continue reading
Daily Insights
Japan’s manufacturing activity stopped expanding in December. Activity in Japan’s manufacturing sector fell to the neutral mark in December, according to flash Purchasing Managers’ Index data out this morning, after two-and-a-half years of expansion. Continue reading
Daily Insights
Volatility reemerges, but focus on the long term. Major U.S. indexes are recouping some of yesterday’s losses, which stemmed from reports that the White House rejected an offer hold preparatory talks ahead of trade negotiations between top officials later this month. Continue reading