Harris Financial 

Services, Inc.

Market and Economic News from LPL Financial Research Team

Week of  February 11, 2019

MARKET COMMENTARY; This weekly update offers insights into domestic and global financial markets events, policy actions, and geopolitical impacts.

“Key Takeaways from Fourth Quarter Earnings”

KEY TAKEAWAYS

  • Earnings growth for the fourth quarter is tracking to a solid 17%, above prior estimates but below the pace of the previous three quarters.
  • The bar has been substantially lowered for the first quarter, setting up potential upside surprises, particularly if trade uncertainty is diminished.
  • We expect S&P 500 companies will be able to at least deliver mid-single-digit earnings growth in 2019, driven by solid economic growth, fiscal stimulus, and share buybacks.

ECONOMIC COMMENTARY; This weekly update offers insights into the U.S. and global economy.

“Feeling Confident?”

KEY TAKEAWAYS

  • Consumer confidence has dropped sharply, primarily from what we see as
    temporary factors.
  • Economic fundamentals are still sound and could help stabilize sentiment.
  • We have yet to see the signs of excesses that have preceded past recessions.