Market Update: Fri, Jul 24, 2020 | LPL Financial Research

DAILY INSIGHTS

Down again. US stocks opened lower following Thursday’s broad weakness. Caution is in the air, as China retaliated by shutting down the US consulate in Chengdu. Asian markets were down significantly on the news. European markets are firmly in the red, even though the Eurozone flash manufacturing Purchasing Managers’ Index (PMI) surprised to the upside. The composite reading reached its best levels since February, yet another sign of global economic improvement. Continue reading

Dollar Weakness May Continue

Economic Blog

The US dollar was remarkably strong during the first quarter of 2020, benefitting from the flight to safety and rallying to nearly a 10% year-to-date gain at the stock market’s low point on March 23. However, as equity markets have recovered, and the US has continued to fight the COVID-19 pandemic, the dollar has given up nearly all of those gains. Continue reading

Market Update: Thur, Jul 23, 2020 | LPL Financial Research

DAILY INSIGHTS

Stocks opened little changed. The S&P 500 Index is trying for its sixth straight positive session as mostly well-received earnings results and optimism that the next big stimulus package out of Washington, DC, will soon be secured are offset by rising weekly jobless claims. Asian markets closed mixed, with gains in Hong Kong’s Hang Seng and a modest loss in China’s Shanghai Composite amid escalating US-China tensions. Trading in Japan was closed for a holiday. European markets are largely flat. Continue reading

Market Update: Wed, Jul 22, 2020 | LPL Financial Research

DAILY INSIGHTS

Mixed markets. US stocks opened mixed, as Tuesday the S&P 500 Index moved to its highest level since February. Caution is in the air as the United States ordered China to close its consulate in Houston, fueling potential retaliation. Europe is firmly in the red the day after passing the 750 billion euro COVID-19 recovery plan on Tuesday. Earnings season is in full swing, with many big names set to report over the coming days. Continue reading

Let’s Get Real About Yields

Economic Blog

While the 10-year Treasury yield has traded in a narrow range since early April, the equivalent real yield, represented by the yield on 10-year Treasury inflation-protected securities (TIPS), has continued to fall and could go lower. Real yields remove the impact of inflation. As shown in the LPL Chart of the Day, while the 10-year Treasury set a new all-time low for yields way back in February, declining 10-year TIPS yields are still above where they were in late 2012. Continue reading

Market Update: Tue, Jul 21, 2020 | LPL Financial Research

DAILY INSIGHTS

Stimulus, vaccine optimism supporting gains in global stocks. Most major international indexes extended Monday’s US gains overnight as investors digest Europe’s approximately $850 billion fiscal stimulus package and continued positive news on vaccine progress. Tech-related stocks led yesterday’s rally amid narrow sector leadership gains after some high-profile names lagged last week. The S&P 500 Index is higher early this morning as we move into the heart of earnings season. Continue reading

Market Update: Mon, Jul 20, 2020 | LPL Financial Research

DAILY INSIGHTS

US stocks opened little changed. The S&P 500 Index, which ended last week fractionally shy of positive territory year to date, will try to continue its three-week win streak as markets focus on flattening the COVID-19 curve, vaccine prospects, stimulus haggling, and earnings season. Most Asian markets were little changed, with the Shanghai Composite’s 3.1% jump the outlier after the equity investment cap for insurers was raised. European markets are higher in midday trading. Continue reading