Market Update: Fri, Jan 3, 2020 | LPL Financial Research

Daily Insights

Stocks lower on airstrike news. U.S. stocks are lower this morning as global markets react to a U.S. airstrike in Iran that killed a top Iranian military official. The strike could escalate tensions in the Middle East, curbing risk appetite in the short term and potentially hindering a frail global economic recovery. WTI crude oil prices have jumped to the highest level since May on speculation that tensions could lead to disruption in the global flow of oil. Continue reading

Yield Curve’s the Biggest Fixed Income Story of 2019

Market Blog

The inverted yield curve was the biggest story of 2019 in the bond market. Historically, when long-term bond yields fall below short-term yields, as the 2- and 10-year Treasury yields did in August, recessions have tended to follow, though with wildly varying lead times. Thankfully, the yield curve has normalized since then as the 10-year yield has rallied. Continue reading

Market Update: Thurs, Jan 2, 2020 | LPL Financial Research

Daily Insights

A new year. It’s a new year for U.S. stocks, which are higher amid headlines on new monetary stimulus measures in China. The People’s Bank of China cut the country’s reserve requirement ratio for banks, releasing a wave of cash into the financial system in an effort to boost lending. Stocks are also benefiting from hopes the United States and China will sign a limited trade agreement January 15. Continue reading

The S&P 500’s Decade Challenge

Market Blog

It’s the last day of the decade, so we thought we’d do our own “decade challenge” for the S&P 500 Index.

After all, it has been an unprecedented 10 years for financial markets. At the end of 2009, the S&P 500 was nine months into what would be the longest bull market on record. Since then, the benchmark has almost tripled, riding a wave of economic growth, improved earnings, muted inflation, and central bank accommodation. Continue reading

Market Update: Tues, Dec 31, 2019 | LPL Financial Research

Daily Insights

Last day of the year. U.S. stocks are relatively unchanged on the last trading day of 2019. Stocks may meander into the New Year in the absence of market-moving headlines, capping an impressive year for many asset classes. The S&P 500 Index has climbed 29% year to date, poised for its best year since 2013. Continue reading

Market Update: Mon, Dec 30, 2019 | LPL Financial Research

Daily Insights

Coming to a close. U.S. stocks are slightly higher this morning as the year (and the decade) comes to a close on Tuesday. There aren’t many macroeconomic events scheduled between now and then, and headlines have been sparse over the past couple of weeks. We expect stocks to meander around record levels amid light trading these next two days. Continue reading

The Year of the Consumer

Economic Blog

2019 was the year of the U.S. consumer.

When the year started, trade tensions were heating up and recession calls had grown louder. Many investors saw the end of the business cycle coming as the expansion was on the cusp of becoming the longest on record.

Then, the consumer showed up in a powerful way. As shown in the LPL Chart of the Day, consumer spending propelled output growth in 2019, while other sectors of the economy floundered. Gross domestic product (GDP) increased 2.4% on average in the first three quarters of the year, and the economy is poised for its third consecutive year of 2% growth. Continue reading

Market Update: Fri, Dec 27, 2019 | LPL Financial Research

Daily Insights

Seasonal tailwinds. Seasonal tailwinds have carried stocks this late in December in the absence of other headlines. The S&P 500 Index has climbed 0.6% this week through Thursday, poised for its 11th weekly gain in 12 weeks. Stocks’ persistent rally over the past two months has pushed the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite to new highs. Technology shares’ recent run has been especially impressive: The Nasdaq Composite has closed at 10 consecutive record highs for the first time since 1997. Continue reading

Lots of Winners in 2019

Market Blog
December 26, 2019

It was hard not to stumble into a winner if you owned stocks in 2019. With just four trading days left in the year, the S&P 500 Index has returned over 31%, its best yearly return since 2013. Whether you owned diversified stock portfolios of growth or value stocks, small or large cap stocks, domestic or international stocks, the chances are good that you ended up with returns of more than 25% from your stock portfolios.

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Market Update: Thurs, Dec 26, 2019 | LPL Financial Research

Daily Insights

Quiet December a contrast to 2018. With four trading days left until the New Year, markets continue to look to drift higher, with stocks set to open modestly higher this morning. The MSCI Asia Pacific Index rose 0.2% overnight while European markets remain closed for the holiday. The S&P 500 Index has moved higher eight of the last ten days and has not seen a move of more than 1% since October 11, 2019. Contrast that with 2018’s tumultuous December, which saw 10 moves of more than 1%, including declines of more than 2% on December 23 and 24. The market started a mighty rally from there as the tone shifted at the Federal Reserve, with the index up almost 40% over the ensuing year through Tuesday’s close.

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