Broker Check
Market Update: Wed, May 1, 2019

Market Update: Wed, May 1, 2019

| May 01, 2019

Market Update: Wed, May 1, 2019 | LPL Financial Research


Daily Insights

More new highs. The S&P 500 Index closed at a new all-time high for the third consecutive day, capping its best April since 2009. This is the first year since 2013 that each of the first four months of the year have been higher. So far, the S&P 500 is up 17.5% for the year, the best four-month start since 1987. Shippers, semiconductors, and financials were the leading groups for the month, while biotech and gold miners lagged.

Sell in May? It is officially the month of May, and with that, we’re starting to hear the annual “Sell in May” calls. This is because the worst six months of the year has been from May until October, up only 1.5% on average for the S&P 500. With the S&P 500 up 25% from the December lows, we do think the odds favor more of a consolidation, or even modest correction, during this historically troublesome time of the year. On the LPL Research blog later today, we’ll take a closer look at the history of “Sell in May”.

Fed day. Federal Reserve (Fed) policymakers are concluding their latest meeting with a policy announcement later today. Markets are overwhelmingly predicting unchanged rates for this meeting, consistent with the Fed’s messaging of a pause in rate hikes. Even though no changes to headline policy are expected, Fed Chair Jerome Powell could provide important context on economic conditions and inflation in his post-meeting comments.

Job creation highest in nine months. Today’s Automatic Data Processing (ADP) payroll report hinted that April labor market activity was strong. ADP data showed payrolls rose 275K, the biggest increase since July 2018 and above consensus estimates for a 180K gain. We’ll get more details on the state of the U.S. labor market in Friday’s April jobs report.

More encouraging signs. Data continue to show a resurgence in U.S. consumer health after lackluster activity over the past few months. The Conference Board’s Consumer Confidence Indexclimbed to 129.2 in April, bouncing back from a 16-month low reached in January. Consumer sentiment and spending both took a noticeable hit last quarter amid a record government shutdown and an influx of negative global headlines, but improving fundamentals point to stronger activity ahead.


Click Here for our detailed Weekly Economic Calendar




  • Unemployment Rate (Apr)
  • Markit US Services PMI (Apr)
  • Markit US Composite PMI (Apr)
  • ISM Non-Manufacturing Index (Apr)
  • Eurozone PPI Report (Mar)
  • Eurozone CPI Report (Preliminary, Apr)
  • Nonfarm Payrolls Report (Apr.)


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 # 1-848405 (5/20)