This week may be the most important of the year for the markets. The week starts off with the Monday release of the closely-watched Institute for Supply Management (ISM) report on U.S. manufacturing, followed by the mid-term elections on Tuesday, the Federal Reserve meeting on Wednesday, which is expected to reveal the Fed’s plan for [...]

John Canally, CFA Economist LPL Financial There is an eclectic mix of events and data due out this week in the United States, as market participants: ƒƒReflect on last week’s Federal Open Market Committee (FOMC) statement ƒƒLook ahead to the September jobs report, set to be released on Friday, October 8 ƒƒContinue to assess the [...]

Anthony Valeri, CFA Market Strategist LPL Financial Build America Bonds Bounce Taxable Build America Bonds (BABs) extended a recent run of outperformance relative to both U.S. Treasury bonds and Corporate bonds despite an uncertain future. Last week, strong investor demand helped the market digest one of the heavier weeks of new BABs issuance witnessed this [...]

Last week, the official recession dating committee, the National Bureau of Economic Research, announced that the recession was officially over in June of 2009. This was not surprising to most market participants. In fact, the LPL Financial Current Conditions Index reflected at that time a move from contraction to growth. However, the question today that most investors want to see addressed is: will the economy slip back into recession?

On that note, the Federal Reserve’s (Fed) message last week implied the Fed was preparing to take action to help ensure the economy avoids a return to recession. In a surprisingly transparent statement made last week, the Fed told us that inflation is so low they are not doing enough to promote growth. Specifically, the Fed stated, “Measures of underlying inflation are currently at levels somewhat below those the Committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability.”