China’s official purchasing managers’ index (PMI) for manufacturing expanded for the ninth straight month, rising to a better-than-expected 52.1—the highest level since September 2017. The services gauge at 56.4 was even stronger, highlighting China’s effective virus containment. As recoveries for the United States and Europe stall, China’s growth continues to stand out globally.
Closing out a strong November. The S&P 500 Index opened lower with COVID-19, strong China data, oil prices, and holiday shopping in focus. The index will try to end a very strong November on a high note after gaining 11.3% month to date.
- OPEC plus (including Russia) is meeting to discuss an extension to output curbs.
- Online spending on Black Friday rose 22%, offsetting the roughly 50% drop in store traffic (source: Adobe Analytics, Sensormatic Solutions).
- Asian markets were broadly lower, led down by Hong Kong (-2.1%).
- European markets are flat to slightly higher in midday trading.
Technical update. US equities decisively broke out last week, with all major indexes closing out the holiday-shortened week at record highs. Stocks are slightly lower this morning. The US dollar has broken down to its lowest level since April 2018. Copper is soaring to its highest level since March 2013.
COVID-19 news. After a new record daily case count of 194,979 on Friday, US case growth slowed over the holiday weekend, resulting in a 5.4% decline in the seven-day average over the prior week—its slowest since September 14 (source: COVID Tracking Project).
- Hospitalizations had a similar 4.3% weekly decline in the seven-day average.
- Moderna plans to request clearance for its coronavirus vaccine in the United States and Europe today.
- The United Kingdom may approve the shot from Pfizer and BioNTech within days.
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 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.
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.
