Top Story
Streaking. Stocks have been extremely strong recently. Here are some eye-opening stats.
- The S&P 500 Index is up seven days in a row for the first time since August 2020. It hasn’t been up eight in a row since April 2019.
- The S&P 500 Index has made a new all-time high seven days in a row, the longest streak since eight in a row in June 1997.
- The S&P 500 Index has closed higher five consecutive months for the first time since five ending in August 2020. That last time it got to six was September 2018.
- The S&P 500 Index has closed higher five consecutive quarters for the first time since the end of 2016, that streak made it to nine quarters in a row.
The bottom line is a lot of times momentum begets momentum and this much strength very well could lead to continued strong equity performance the rest of 2021.
Daily Insights
US equities are calm after a 7-day win streak for the S&P 500 Index.
- The S&P 500 Index action is muted as many traders are likely still on vacation and the big news of the week (the FOMC minutes) is tomorrow.
- West Texas Intermediate oil prices hit six-year high as OPEC members failed to reach a production deal.
- European markets are mixed through midday trading amid better than expected Eurozone May retail sales.
- Asian equities closed narrowly mixed as Hong Kong’s (Hang Seng) market finished 0.25% lower.
Technical update
- The S&P 500 has closed at 7 consecutive record highs, yet the most individual components to hit a new high along with the index on any given day has been 11.5%
- WTI crude prices briefly hit their highest level since 2014
- The 10-year yield continues to drift lower towards its 200-day moving average, at just 17 bps this is the closest the yield has been to its key moving average since December
Week ahead. The following economic data is slated to be released this week:
- Tuesday—Markit Purchasing Managers Index (PMI, June), Institute for Supply Management (ISM) Non-manufacturing Index (June)
- Wednesday—US Bureau of Labor Statistics Job Opening and Labor Turnover survey (May), Federal Open Market Committee (FOMC) minutes
- Thursday—Weekly initial and continuing claims, consumer credit (May)
- Friday—Wholesale inventories (May)
Three Things That Worry Us
We explore three things that worry us that could make the market more susceptible to a pullback as we enter the second half of 2021. Learn more in this week’s Weekly Market Commentary.
The Krispy Kreme Indicator
In this week’s LPL Market Signals podcast, LPL Research discusses why stocks are choppy in typical year two fashion, with many worries are creeping in and the upcoming Krispy Kreme IPO near the top of the list.
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