LPL Financial Weekly Market Commentary for March 1, 2010

Jeffrey Kleintop, CFA
Chief Market Strategist
LPL Financial

Groundhog Day came late in February for the stock market. Last Thursday’s
worsening weekly unemployment claims data spooked stock market
investors worried about job growth as February winter storms negatively
impacted the data. 

In that labor report, the stock market saw its shadow
and it appears that investors are in for six more weeks of winter weather
affected reports contributing to stock market volatility. Everything from retail
sales to manufacturing to the job market is likely to have been affected
by the unusually bad winter weather in February. The most signifi cant of
these may be the Employment report for February, due this week on Friday
morning, which is likely to show another month of job losses that were
exaggerated by the winter storms.

Some Highlights:

• Last week, the stock market saw its shadow
  and we are in for six more weeks of winter
  weather affected reports contributing to stock
  market volatility.
• One way to invest in a low-return, volatile market
  is to focus on yield rather than solely on price
  appreciation.
• The added advantage of incorporating a focus on
  dividends now is that March and April tend to be
  the time of year when most companies increase
  their dividend payment.
• We expect dividend payments to rebound
  in 2010, including those from the Financial
  sector as dividends are reinstated, since some
  companies now have both the ability and
  incentive to pay dividends.

Click on the PDF below to download the full report:

Groundhog Day Comes Late

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