DAILY INSIGHTS

Stocks displaying strength. The S&P 500 Index opened above the 3,000 level, as equities around the world continued to rally on reopening optimism. Fiscal stimulus is in the air as well, as the European Commission is reportedly set to propose a 750 billion euro recovery package, while Japan is finishing a $1.1 trillion stimulus package. Tensions between the United States and China remain heightened, but contained new cases of COVID-19 are helping offset those worries. Continue reading →

Economic Blog

The Federal Reserve (Fed) increased its bond exchange-traded funds (ETF) purchases in the week ending May 20 (the most recent data available), adding another $1.5 billion in bond ETFs to its balance sheet, bringing the total holding to $1.8 billion. With Fed purchases accelerating, the average investment-grade corporate bond spread dipped below 2% last week for the first time since March 11. (Credit spreads reflect market participants’ perception of credit risk.) As shown in the LPL Chart of the Day, spreads had been largely flat for about a month following the initial declines off 2020 peaks despite stock market gains, but Fed buying may have been a catalyst for further compression. Continue reading →

DAILY INSIGHTS

Markets higher after holiday. Following the big gains in US equities last week, the S&P 500 Index opened above the 3000 level for the first time since early March. Asian and European markets fared better as well, with Japan a standout. Moreover, WTI crude prices are higher after a solid four-week showing. Meanwhile markets remain supported by signs of recovery as more of the US economy reopens Continue reading →

Market Blog

Index Performance – Week ending 5/22/2020

Performance as of 1:30 PM ET

S&P 500 Index:  2.96%

Dow Jones Industrial Average:  3.03%

Nasdaq Composite:   3.30%

Continue reading →

DAILY INSIGHTS

Memorial Day Holiday. LPL Financial and the markets will be closed Monday, May 25, in recognition of Memorial Day. We will resume normal business hours Tuesday, May 26.

Stocks pared earlier losses and opened slightly lower. The S&P 500 index is trying to add to its 3% week-to-date gain this morning ahead of the long weekend, despite an increase in geopolitical tensions and concerns that stocks may have come too far too fast. Global markets were jittery overnight after Beijing announced plans to impose a national security law on Hong Kong. The Shanghai Composite slipped 1.9%, while stocks in Europe were slightly higher, led by Italy and Spain. Gold prices rose while oil fell. Continue reading →

Economic Blog

Leading economic indicators are signaling that the pace of economic deterioration may be slowing. As shown in the LPL Chart of the Day, the Conference Board’s Leading Economic Index (LEI), a composite of leading data series, fell 4.4% month over month in April. Continue reading →

DAILY INSIGHTS

Memorial Day Holiday. LPL Financial and the markets will be closed Monday, May 25, in recognition of Memorial Day. We will resume normal business hours Tuesday, May 26.

Equities head lower. US stocks opened lower after Wednesday’s rally, following Asian and European market sell-offs. Initial weekly jobless claims came in at 2.4 million, for a total of 39 million claims since mid-March, once again showing how fragile the state of the economy is, even though states are slowly starting to open up. Continue reading →

Economic Blog

Most economic charts we look at in the LPL Research Department look alike. Many segments of the US economy came to an abrupt halt in March when the lockdowns and business closures began, making most economic charts covering March and April look like a steep drop on a roller coaster. Continue reading →

DAILY INSIGHTS

Memorial Day Holiday. LPL Financial and the markets will be closed Monday, May 25, in recognition of Memorial Day. We will resume normal business hours Tuesday, May 26.

Stocks trend higher. Stocks opened higher after a weak showing on Tuesday, given the sobering news that vaccine experts were unable to use Monday’s data to draw firm conclusions on the effectiveness of Moderna’s COVID-19 vaccine. Continue reading →

Market Blog

The incredible rally off the March 23 lows continues for equities, with the S&P 500 Index now up more than 32% in 40 trading days. As impressive as the rally has been, we do have some near-term concerns, as we discussed in Downside Risk Remains. Higher valuations, US-/China relations, weakening technicals, and the historically troublesome summer months all could play a part in potential weakness after the record run. Continue reading →