Friday, February 26, 2021
Top Story
Three charts to see
Today we share three charts that have our attention on the CW Blog.
- As this bull nears one year old, it is one of the strongest starts to a new bull market ever. Historically, other strong starts began to slow some around this time.
- A good start to a year can continue, as we discuss The Valentine’s Day Indicator.
- March was a horrible month for stocks last year, but historically, this month has been quite strong.
Daily Insights
US stocks open modestly higher following Thursday’s tech-led selloff.
- The rapid advance in Treasury yields continues to be the dominant theme of the week, putting pressure on the higher-valuation tech
- European are markets firmly lower in midday trading.
- Asian stocks were under pressure overnight with Japan down nearly 4%.
Technical update
- The S&P 500 Index broke a two-day winning streak by erasing all the cumulative gains seen over those days and dropping 2.4%.
- Despite the index hitting its intraday high back on February 16, Thursday marked the first day of broad-based selling pressure, as decliners on the NYSEoutnumbered advancers by more than 7:1, the worst reading since late October 2020.
COVID-19 news
The United States reported 75,000 new COVID-19 cases on Thursday, up 9% from the week prior and marking the fourth straight week-to-week increase (source: Johns Hopkins).
- States hit hardest by the winter storm continue to account for much of the increase in cases in recent days, including Texas and Oklahoma.
- Western Europe is now reporting rising cases with the exception of Spain.
LPL Research in the Media
LPL Research Equity Strategist Jeff Buchbinder was quoted in The Wall Street Journal discussing the S&P 500 Index. Sign in or subscribe to The Wall Street Journal to view the article.
Why Sustainable Investing is Sustainable
Chief Strategist Ryan Detrick, Equity Strategist Jeffrey Buchbinder, and guest speaker Jason Hoody, Head of Investment Manager Research discuss why sustainable investing is a major trend that isn’t going away & the potential positive impact of environmental, social, and governance factors on returns. We also explore the strong earnings season and recent retail sales during this week’s Market Signals.
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