All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.
US Stocks surged on the last day of the week on the positive jobs news, but it was not enough to counter weak economic news earlier in the week. The S&P 500 dropped 0.8%, while the Dow sank 0.6% for the week. Internationally, Japan fell 3.2% and Europe was off 2.1% on disappointment over the ECB decision. The 10 year Treasury yield fell to 2.45% over the week as bonds rose. Article
The unemployment rate dropped below 6% to 5.9% in September for the first time since July 2008. Employers added 248,000 jobs during the month bouncing back from a lighter hiring August. The average monthly payroll expansion this year has been 227,000, which would put it on pace for the best year of hiring since the late 90s. However, part of the decline in unemployment reflects a shrinking labor force as less people look for work. Also wage growth has been weak with wages rising just 2% over the past year. Article
US auto sales rose 9% last month close to a decade high. The rising US demand is has helped counter weakness abroad from car makers.
US factory growth eased in September with hiring levels easing.
Construction spending fell 0.8% below estimates of a 0.6% gain.
The ECB announced no new measures at the conclusion of their most recent meeting stating that it is too soon to see the effects of their last announced stimulus measures. Article
Consumer spending rose 0.5% in August from July and personal income rose 0.3%.
The Fed’s preferred measure of inflation rose 1.5% in August from the year before down slightly from July’s rate of 1.6% and well below the fed’s target of 2%.
Consumer confidence dropped to its lowest level since May in September.
Berkshire Hathaway bought Van Tuyl, the nation’s fifth largest auto retailer and about an $8 billion retail business, to launch a consolidation in the auto sales sector and will leverage its other companies to provide financing and related services. The new entity will be named Berkshire Hathaway Automotive. Article
JP Morgan announced that 76 million household’s data was compromised in the security breach by hackers this summer.
Ford slashed its full year profit outlook by $1.5 billion driven by quality issues and weakness in emerging markets.
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