Daily Insights
Weak Chinese trade data, the unofficial kickoff of fourth quarter earnings season, and the ongoing government shutdown are on investors radars this morning. Continue reading
Weekly Market Drivers | LPL Financial Research
Rebound continues on trade talk optimism, Fedspeak
US: S&P 500 Index +2.54%, Dow +2.43%, Nasdaq +3.45%
Europe: STOXX Europe 600 +1.69%, German DAX +1.11% France CAC 40 +0.93%, U.K. FTSE 100 +1.18%
Asia: Japan Nikkei +4.08%, China Shanghai Composite +1.55%, Korea KOSPI 3.25%
Rates/Commodities: 10-Year Treasury yield +4 basis points to 2.70%, WTI crude oil +10.18%, COMEX gold: +0.34%
Time to Take Off The Blindfold?
The S&P 500 Index is off to its best start in years, but this is on the heels of the worst year for stocks since 2008. The trifecta of crashing oil prices, confusion from the Federal Reserve (Fed), and trade issues with China all pushed equities lower by 14% during the usually bullish fourth quarter last year, and in the process made December the worst month of the year for the first time, according to data going back to 1950.
Market Update: Fri, Jan 11, 2019 | LPL Financial Research
Daily Insights
Stock rebound continues. After trading higher every day this week, the S&P 500 Index is now up more than 10% from its closing lows on Christmas Eve. Continue reading
Can the Economy Handle Current Rates?
We’ve been hearing a lot of debate recently about the U.S. economy’s ability to withstand rising interest rates.
However, as shown in the LPL Chart of the Day, current interest rates are historically low relative to the robust output growth we’ve seen recently, proving that the Federal Reserve’s (Fed) path of increasing interest rates isn’t unusually cavalier given economic strength.
Market Update: Thurs, Jan 10, 2019 | LPL Financial Research
Daily Insights
Resilient earnings expectations in developed international markets. In an environment where U.S. earnings have generally paced the globe, 2019 earnings estimates for the MSCI EAFE Index-mostly Europe with much of the rest in Japan-have actually held up better than those in the U.S. and emerging markets (EM) recently. Continue reading
Lower Valuations May Signal Solid Gains For Stocks
Stocks have rebounded strongly off the December lows, with the S&P 500 Index adding 2% in January to its 7% gain over the last week of 2018. We see potential for further gains ahead given the fundamentals supporting economic growth and corporate profits, along with a Federal Reserve that appears more flexible than previously feared, and improving prospects for a U.S.-China trade deal.
Market Update: Wed, Jan 9, 2019 | LPL Financial Research
Daily Insights
Make it three in a row. The S&P 500 Index rose for the third day in a row for the first time since ahead of the Midterm elections. In fact, stocks haven’t closed in the red since Federal Reserve (Fed) Chairman Jerome Powell said the Fed would be ‘patient’ in regards to its interest rate policy. Continue reading
Our 2019 Outlook for Fixed Income
The environment for fixed income investors has been challenging over the last several years, and the struggle has intensified recently. As shown in the LPL Chart of the Day, long-term yields have fallen to 12-month lows, weighed down by plunging inflation expectations as fears of a global slowdown increase.
Market Update: Tues, Jan 8, 2019 | LPL Financial Research
Daily Insights
NEW LPL Market Signals Podcast. Chief Investment Strategist John Lynch and Senior Market Strategist Ryan Detrick are back for a second season of the Market Signals Podcast. In this week’s episode, our strategists discuss why 2019 could see a bear market without a recession. Subscribe to the free Market Signals podcast series on iTunes, Google Play, Spotify or wherever you get your podcasts!
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