Market Update: Tue, Sept 8, 2020 | LPL Financial Research

DAILY INSIGHTS

Tech weakness weighing on US markets early. The S&P 500 Index opened lower after the long holiday weekend as concerns about valuations and a shift in sentiment continued to weigh on some tech-oriented names. Similar concerns sent most major European indexes lower at midday, while most major Asian indexes were higher overnight. Continue reading

Analyzing the Jobs Report

Economic Blog 

The jobs market remains strong, as the August nonfarm payrolls came in at a solid 1.37 million jobs created, right in line with expectations. This was the fourth consecutive month of gains, up 10.6 million over this time frame. In March and April more than 22 million jobs were lost, so we still aren’t quite to half of the jobs recovered though. Continue reading

Beige Book Barometer Turns Positive

Economic Blog

The outbreak of COVID-19 caused considerable deterioration in the economy and left many wondering when we might expect conditions to improve. As historic stimulus measures were implemented to backstop the economy from outright collapse, many also wondered if this would be enough to restore sentiment to a level where economic activity would follow. We are now seeing the first stages of improving sentiment based on the results of the most recent Federal Reserve (Fed) Beige Book. Continue reading

Market Update: Thu, Sept 3, 2020 | LPL Financial Research

DAILY INSIGHTS

Stocks opened lower. The S&P 500 Index opened lower this morning after a strong start to September, historically a seasonally weak month. Better than expected jobless claims were released this morning, and the much-anticipated monthly jobs report will be released Friday, while Institute for Supply Management (ISM) services data will garner some attention. Asian markets closed mixed with Japan up and China and Hong Kong down. European markets rose after France introduced a stimulus package and German purchasing managers’ data exceeded forecasts. Continue reading

Market Update: Wed, Sept 2, 2020 | LPL Financial Research

DAILY INSIGHTS

Markets Continuing Run Higher. US stocks opened higher after another solid performance and round of new highs Tuesday. Growth once again outperformed value, but the story of the day was an upside surprise in August US manufacturing numbers (more below). Today is a quiet news day, with many looking ahead to the monthly jobs report on Friday as the next major driver. Asian markets finished mixed but mostly higher, with European markets up significantly during midday trading. Continue reading

Was Trump Right About Rates?

Economic Blog

Federal Reserve (Fed) Chair Jerome Powell gave a significant speech at the annual central bank symposium at Jackson Hole last week in which he laid out the general conclusions of the Fed’s review of its Statement on Longer-Run Goals and Monetary Policy Strategy. That document outlines how the Fed goes about fulfilling its congressionally assigned mandate of stable prices and maximum sustainable employment. The short version of the outcome: The Fed will let inflation run a little hotter than it might have in the past and short-term rates, at least, will be lower for longer. Continue reading