All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.
US markets ended a turbulent month on a down week with fears over a strike on Syria and the potential fallout sending stocks lower. The S&P 500 sank 1.8% for the week and 3.1% in August, while the Dow fell 1.3% for the week and 4.4% for the month. Internationally, Europe dropped 2.4% for the week, but was down 0.8% for the month. Japan fell 2% for the week and over August. Oil surged on concerns over the region to $107.65 a barrel, a two and a half year high. The 10 year Treasury yield eased on the concerns dropping to 2.747%. Article
The Treasury announced it would reach its borrowing limit in Mid October setting a deadline for fiscal agreement in Washington. Article
Second quarter GDP was revised up to 2.5% above the previous release of 1.7% and estimates of 2.2%. The higher number was driven by higher exports, business investment and consumer expanding than the prior estimate. Article
Durable goods orders sank 7.3% in July, the first drop in four months, and US consumer spending ticked up 0.1% in July, the weakest growth level since April raising worries about third quarter growth.
The Case/Shiller index for home prices rose 12.1% in June over the past twelve months, however that is a slower pace than earlier in the year as higher mortgage rates take hold.
Emerging market economies are raising interest rates in an effort to stem the flow of cash out of the countries. Indonesia raised its benchmark rate 0.5%, Brazil increased it 0.5% and Turkey raised rates as well.
Pharmaceutical giant Amgen agreed to purchase biotech firm Onyx Pharmaceuticals for approximately $10.4 billion seeking to tap Oynx’s cancer drug line.
Stock exchange operator BATS Global Markets will merge with Direct Edge Holdings to create the second largest US stock exchange behind the New York Stock Exchange.
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