Stimulus Talks, Election News, and Earnings Season

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We recap the best week for the S&P 500 Index in over two months in a rally that saw broader market participation from a variety of sectors and small cap stocks. We also consider the stimulus and how the upcoming election remains in focus as third quarter earnings season approaches.

Latest on stimulus

The United States has trailed Europe and Japan in terms of the amount of fiscal stimulus delivered to bridge to the end of the pandemic—one reason to think more aid is justified. Another big package is more likely than not, but investors will probably have to wait until after the election.

Election: What Markets Are Saying

Taxes are perhaps the biggest factor to consider in terms of potential election impacts. We see a closer election than polls suggest and are watching areas of the market tied to infrastructure spending, green energy, and trade for clues as to what November 3 might bring.

Earnings Season Preview

We offer three reasons why corporate America is set up for a big upside surprise this earnings season, including one of the best quarters of guidance relative to prior expectations in recent memory. We also highlight three things to watch as companies report: the impact of COVID-19, potential policy changes post-election, and whether current pandemic winners will continue to win. 

Tune in now

Listen to the entire podcast to get the LPL strategists’ views and insights on current market trends in the US and global economies. To listen to previous podcasts go to Market Signals podcast. You can subscribe to Market Signals on iTunes, Google Play, or Spotify.

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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 in the podcast may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. All indexes are unmanaged 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 data is from FactSet.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was prepared by LPL Financial, LLC. 

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