Financial News and Portfolio Management Discussion through November 6th

All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.

US stocks rose over the week on easing concerns of global growth. The S&P 500 gained 1.0% and the Dow rose 1.4% for the week. Abroad, Europe increased 1.2% and Japan was up 0.9% for the week. The US Dollar hit a near 13 year high on expectations of a Fed interest rate increase in December. Interest rates rose with the 10 year yield rising to 2.33%, its highest level since July, and the two year yield rose to its highest level in over five years. Oil is near its year low of $44.29 a barrel.  Article

The October employment report surpassed expectations with 271,000 positions added and an upward revision of 12,000 for August and September. The monthly average for the year moves up to 206,000 and the unemployment rate fell to 5% its lowest since level since April of 2008. Earnings perked up as well with average hourly earnings up 2.5% for the past year. It’s the best trailing year performance since 2009.  Article

The jobs report brought high expectations that the Fed would raise interest rates at its December meeting.

A measure of Chinese factory activity decelerated less than expected.

US manufacturing grew at its weakest level in over two years in October and the pace of growth has declined for four straight months.

US auto sales rose 13.6% in October and are on pace to post the best sales year ever.

China said it may lower its growth target and that the country could tolerate growth as low at 6.5%. Its target rate had been 7%.

In testimony before congress Fed Chief Yellen said that a December rate hike was a “live possibility.”

China is set to lift the ban on IPOs it imposed in the throes of market turmoil in July.

Drug maker Shire agreed to buy biotech firm Dyax for $6.5 billion.

Activision purchased King Digital for $3.4 billion in a combination of major video game companies.

VW said there are an additional 800,000 cars affected by the emissions scandal which will cost another $2 billion to address.

Disney, Facebook and Berkshire Hathaway all met or exceeded expectations for the quarter, while Tesla and Toyota missed estimates.

 

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Raffa Wealth Management is an independent investment advisor providing nonprofit organizations, high net-worth investors, and qualified retirement plans with a full range of investment consulting services.  We were established to fill the need for transparency, clarity, and vision in the professional management of investment assets.   Visit us at www.raffawealth.com

 

There is no guarantee that any investment strategy, including those described here, will be successful. Any investment or investment strategy can lose money. Past performance does not guarantee or predict future results. You should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Raffa Wealth Management, LLC. This information was gathered from reliable sources but we cannot guarantee accuracy. Indexes do not reflect the fees associated with actual investments and such fees would reduce the performance illustrated.
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