Stocks down sharply as virus spreads. Stocks are under heavy selling pressure this morning amid fears that the coronavirus–known as COVID-19–will spread around the globe after reported cases in South Korea, Italy, Japan, and Iran climbed. Asian equities fell more than 1% overnight, while key European markets are down about 3%. The 10-year Treasury yield, near 1.4%, is within 0.1% of an all-time low, while gold is rallying.
Earnings season winding down. With 441 S&P 500 Index companies having reported, S&P 500 earnings growth for fourth quarter 2019 is tracking to a roughly 1% year-over-year increase, well above the 2.4% estimated decline as of January 20. Revenue growth of 3.5% represents a 0.9% upside surprise. Estimates have held up relatively well on mostly upbeat guidance.
Week ahead. This week’s U.S. economic calendar includes data on consumer confidence; new and pending home sales; revised fourth quarter gross domestic product; durable goods orders; and personal income, spending, and inflation data for January from the U.S. Bureau of Economic Analysis. Internationally, the most important data to watch will be China Purchasing Managers’ Index (PMI), where impact from the COVID-19 outbreak is expected to be significant. Meanwhile, earnings season continues with 41 S&P 500 companies slated to report.
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 into directly. Index performance is not indicative of the performance of any investment and do 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.
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.
If your representative is located at a bank or credit union, please note that the bank/credit union is not registered as a broker-dealer or investment advisor. Registered representatives of LPL may also be employees of the bank/credit union.
These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, the bank/credit union. Securities and insurance offered through LPL or its affiliates are:
- 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 1-954784