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March Madness: Stock Market Edition

LPL Research share their “Final Four Factors” for the stock market in 2021 in this week’s Weekly Market Commentary, available at 1 p.m. ET.

Daily Insights

U.S. stocks open little changed as reopening theme continues to dominate.

• European markets are broadly higher in midday trading.
• Asian stocks were mixed overnight with China underperforming following a mixed-bag of economic releases.

Week ahead

Economic events this week include:

• Tuesday—Import and export prices (Feb.), retail sales (Feb.), capacity utilization and industrial production (Feb.), National Association of Home Builders’ Housing Index (Mar.)
• Wednesday—Federal Reserve (Fed) policy announcement including updated economic forecasts, housing starts and building permits (Feb.)
• Thursday—Weekly initial unemployment claims and leading economic indicators (Feb.)

Technical update

The S&P 500 Index closed at record highs the final two days of last week, completing a 2.6% gain for the week. Despite the Nasdaq Composite’s correction, breadth remains strong as the Cumulative Advance-Decline lines for both the S&P 500 and broader New York Stock Exchange (NYSE) closed at all-time highs. The 10-year Treasury yield hit a post-crisis high last week, touching 1.64% on Friday.

COVID-19 news

The United States reported 38,000 new COVID-19 cases on Sunday, down 8% week over week as the rate of decline in cases continues to moderate (source: Johns Hopkins).

• Vaccination efforts continue to accelerate, with about 20% of the U.S. population receiving at least one shot of the vaccine.
• Vaccine shots per day averaged 2.4 million over the past week.
• Going forward, we will be providing COVID-19 updates on Mondays, Wednesdays, and Fridays only.

Fore Things To Know

LPL Research Chief Market Strategist Ryan Detrick lists four things investors need to know about the market and a special thank you to a 30-year veteran of the financial industry in this week’s Market Signals podcast.

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.

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