Jobless Claims Beat Expectations

Jobless Claims Beat Expectations

May 13, 2021
Share |

Weekly Insights

U.S. equities point toward a slightly higher open

  • Market participants consider the effects of Wednesday’s Consumer Price Index (CPI) report on corporate revenues and earnings.
  • The Nasdaq Composite is approximately 0.7% higher as market participants seek to take advantage of discounted growth names.
  • European equities are lower as the Euro Stoxx 50 is off by 3% during midday trading.
  • Most Asian markets finished in the red with Japan’s Nikkei off by almost 2.5%.

Jobless claims beat expectations

  • S. claims for unemployment insurance fell to 473k, beating estimates of 490k (source: U.S. Department of Labor).
  • The report represents a pandemic low, though claims from the previous report were revised slightly higher.

Still favor U.S. but the international equity outlook has continued to improve

  • The tremendous rally in U.S. stocks since March of 2020—this week notwithstanding—has prompted us and others to start looking for opportunities that aren’t pricing in so much optimism.
  • We continue to expect the U.S. dollar to weaken, which could boost non-U.S. stock returns.
  • The sector mix of the developed international equity benchmark (MSCI EAFE Index) is heavier in cyclical value sectors than the S&P 500 Index with a much smaller technology
  • Another reason to take a closer look at international is the recent resurgence of value stocks, as we discuss in today’s LPL Research blog.


Technical update

Wednesday marked the worst day for the S&P 500 since February 25. The selling was broad based, with decliners on the New York Stock Exchange (NYSE) outnumbering advancers by more than 8:1, the worst reading since late October 2020. With support at 4118 broken Wednesday, the next levels of support are the 50-day moving average at 4049 followed by 3980.

 

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.

  • Not Insured by FDIC/NCUA or Any Other Government Agency
  • Not Bank/Credit Union Guaranteed
  • Not Bank/Credit Union Deposits or Obligations
  • May Lose Value