Monday, February 22, 2021
Top Story
Sustainable Investing Year In Review
LPL Research reviews sustainable investing & it’s positive environmental, social & ESG impact on financial return. Find out more in today’s Weekly Market Commentary, available at 1 p.m. ET.
Daily Insights
Rising bond yields pressure stocks as Nasdaq 100 leads to the downside
- European markets lower in midday trading.
- Asian stocks mostly lower overnight, though Japan’s Nikkei 225 posted solid gains.
- Commodity prices continue to climb; copper reaches the highest level since 2011.
S&P 500 Index earnings for the fourth quarter leveled off
- Earnings growth for the quarter is tracking to a 3.1% year-over-year increase, roughly 12 percentage points above January 1 levels.
- Earnings estimates for 2021 have impressively increased 4% year to date and reflect 24% growth over 2020.
- The communication services and energy sectors have seen the strongest upward revisions to 2021 estimates over the past month.
Technical update
The Nasdaq 100 fell every day last week and is lower by more than 1% in early trading today as large-cap technology shares lead markets lower. The index has not been below its 50-day moving average since November 3, 2020. Looking at the broader Nasdaq Composite, we see support in the range from 13,000-13,200.
COVID-19 news
The United States reported 58,000 new COVID-19 cases on Sunday, down 19% week over week, though it may take some time for weather-related testing disruptions to smooth out (source: COVID Tracking Project).
- Those currently hospitalized with COVID-19 continue to plummet, falling under 60,000 for the first time since early November 2020.
- Sunday also marked the first day of new hospitalizations under 1000 since October 2020.
Week ahead
- Tuesday—Consumer Confidence (Feb.), Federal Housing Finance Agency (FHFA) Home Price Index (Dec.).
- Wednesday—Building permits and new home sales (Jan.).
- Thursday—Weekly initial unemployment claims, pending home sales (Jan.), durable orders (Jan.), and revised Q4 GDP.
- Friday—Personal income and consumption (Jan.), wholesale inventories (Jan.), and Sentiment from the University of Michigan (Feb.).
- Midweek—Federal Reserve Chair Jay Powell will testify before Congress.
- All week—Over 50 companies will report fourth-quarter results throughout the week as we head toward the end of earnings season.
Market Signals Podcast: Finding Yield In A Low Yield World
LPL Financial Research Chief Market Strategist Ryan Detrick and LPL Financial Equity Strategist Jeff Buchbinder discuss some under-the-radar ideas to add income to your portfolio in a low yield environment in this week’s Market Signals podcast.
IMPORTANT DISCLOSURES
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested directly. Index performance is not indicative of the performance of any investment and does not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
All index and market data are from FactSet and MarketWatch.
This Research material was prepared by LPL Financial, LLC.
Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).
Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.
- Not Insured by FDIC/NCUA or Any Other Government Agency
- Not Bank/Credit Union Guaranteed
- Not Bank/Credit Union Deposits or Obligations
- May Lose Value
For Public Use – Tracking # 1-05113997