Broker Check
Market Update: Tues, Apr 23, 2019

Market Update: Tues, Apr 23, 2019

| April 23, 2019

Market Update: Tues, Apr 23, 2019 | LPL Financial Research


Hovering near new highs. U.S. stocks have stalled near record highs as investors sort through first-quarter earnings and a slowly improving global landscape. Monday was the 13th straight day the S&P 500 Index closed within 2% of an all-time high (without actually reaching a new high). Since 1995, the S&P 500 has gone as long as 18 days within this range without making a record high, so history shows U.S. stocks could break in either direction soon. We think the S&P 500’s fair value is about 3% from these levels, but the path to that fair value may not be straight.

Signs of steepening. Last month’s quick inversion has woken the U.S. yield curve up. The spread between the 2-year and 10-year Treasury yield has climbed for four straight weeks, the longest streak since November 2016. The yield curve is still historically flat, but we see signs that longer-term steepening could be in process. We’ll outline these signs later today on the LPL Research blog.

Corporate spreads easing. Spreads on U.S. corporate debt have steadily declined since peaking at the beginning of this year, even as Treasury yields have fluctuated amid mixed economic signals. Investment-grade and high-yield debt spreads are now sitting around their lows of the cycle, reflecting strength in U.S. companies’ balance sheets across the credit spectrum.


Click Here for our detailed Weekly Economic Calendar


  • Richmond Fed Manufacturing Index (Apr); Cons: 10, LP: 10
  • New Home Sales (MoM, Mar); Cons: -2.6%, LP: 4.9%
  • Eurozone Consumer Confidence (Preliminary, Apr)


  • Japan Leading Index (Feb)
  • Japan Coincident Index (Feb)
  • Bank of Japan Rate Decision (Apr)
  • Germany Import Prices (Mar)


  • Durable Goods Orders (Preliminary, MoM, Mar); Cons: 0.5%, LP: -1.6%
  • Initial Jobless Claims (Apr. 20); LP: 196K
  • Kansas City Fed Manufacturing Activity Index (Apr); LP: 10
  • Japan Jobless Rate (Mar)
  • Japan Tokyo CPI Report (Apr)
  • Japan Industrial Production (Preliminary, Mar)


  • GDP Report (Initial, Q1 2019); Cons: 1.8%, LP: 2.2%
  • University of Michigan Sentiment Index (Apr); LP: 96.9
  • China Industrial Profits (Mar)


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in this material may not develop as predicted.

All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All 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 performance referenced is historical and is no guarantee of future results.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

The investment products sold through LPL Financial are not insured deposits and are not FDIC/NCUA insured.  These products are not Bank/Credit Union obligations and are not endorsed, recommended or guaranteed by any Bank/Credit Union or any government agency.  The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.

Index data obtained via FactSet


For Public Use – Tracking # 1-845604 (4/20)