Financial Insights

#LPLFocus 2018 FAQs

Last week was the annual LPL Foucs 2018 national conference in Boston which convened over 4,000 advisors and LPL management.  In this week’s commentary, we share the most frequently asked questions from Focus 2018. Click here to read the most asked questions and their answers from  John Lynch Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, of LPL Financial

Another Very Strong Earnings Season Expected

Second quarter earnings season is underway and may be another good one.
Key takeaways include: Consensus estimates are calling for a 21% year-over-year increase in S&P 500 earnings for the second quarter. While some companies are being disproportionately affected by tariffs, we do not expect trade tensions to have much impact on overall results. Though earnings growth may be slowing, we believe the economic expansion has a good amount of runway left. To read more from John Lynch Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial, click here.

So Far, So Good!

July 23, 2018 | posted in: Financial Insights | by

Ryan Detrick, CMT, Senior Market Strategist at LPL Financial, points out that “It is early, but so far 84% of companies have beaten EPS estimates and 74% have topped revenue estimates.” Check out more on the topic here.

2018 Midyear Stock Market Outlook – 2nd Half Rally?

According to LPL Research, “The current environment looks favorable for strong earnings and stock gains. We do expect volatility, but steady economic growth provides a strong backdrop and the potential for opportunity.”
Key takeaways include: We forecast 10% returns or higher for the S&P 500 Index in 2018, but a pickup in volatility. We believe the S&P 500 is well positioned to generate strong earnings, thanks to a combination of steady economic growth and benefits of the new tax law. The profit story remains a global one, although earnings growth expectations are not as strong for developed international. Click here to read the full article by John Lynch, Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial

LPL’s Midyear Outlook 2018 Is Here!

July 11, 2018 | posted in: Blog, Financial Insights | by

LPL Research asks, “In a world of rising volatility, will opportunities emerge?” “For the second half of 2018, continued economic growth and market gains may bring the heightened drama of increased volatility.  So while there may be some twists and turns ahead, at LPL Research we expect the positive fundamentals may prevail.” To read the full LPL Research Midyear Outlook 2018 report, click here.

Playing the CAPEX Theme

“Capital investment is accelerating, a trend we believe should continue.”
So opines LPL Research, suggesting that “One of the most encouraging aspects of the U.S. economy currently is that capital spending is accelerating just as some tailwinds are starting to kick in.”  Key takeaways include: Capital spending is picking up, which we believe should benefit the industrials and technology sectors. Industrial companies have not benefited from the strong manufacturing environment this year, putting the sector in position to potentially play catch-up. We expect technology to get its fair share of capital spending as companies seek to enhance productivity. Escalating trade tensions are a key risk to both sectors   Read More  »