All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.
Stocks had their worst week since June of 2012 on economic news that investors believed will make the Fed more likely to pull back its bond purchase program beginning in September. The S&P 500 sank 2.1% and Dow fell 2.2% for the week. Europe edged up 0.1% on positive growth news and Japan gained 0.3% for the week on positive growth news from both regions. Concerns that the Fed will pull back its bond purchases resulted in the 10 year Treasury yield ending the week at 2.827%, its highest level since 2011. Article
Japan’s second quarter GDP grew at 2.6%, below expectations but still indicates solid growth after a revised high rate of 3.8% in the first quarter.
Retail sales rose 0.2% July and June was revised up to 0.6% from 0.4%. It was the fourth straight month of increases. Article
The Euro zone has finally emerged from recession as the country bloc posted a 1.1% growth rate in the second quarter. It was the first quarter of growth in a year and a half, primarily driven by France and Germany.
Weekly unemployment claims fell to their lowest level since 2007.
Inflation rose 0.2% in July and is up 2.0% from a year ago. Article
New home construction rose 5.9%, but new single family home starts slowed to their lowest pace in 8 months dropping 2.2% in July from June.
The Justice department is challenging the merger between US Airways and American Airlines
Cisco announced it will be cutting 4,000 jobs, but posted an 18% increase in earnings for their most recent quarter. The firm said the cuts were the result of meager growth prospects.
Wal-mart issued a weak earnings report that showed declining sales over their most recent quarter.
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