All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.
After news of progress earlier in the week, worries about fiscal cliff talks falling apart derailed markets on Friday with the S&P 500 and Dow dropping 0.9%, but both indices were up for the week. The S&P 500 gained 1.2% and the Dow rose 0.4%. Internationally, Europe was up 0.6% and Japan jumped up 2.1%. The 10 year Treasury note ended the week at 1.754%.
Positive news continues to emerge out of the housing industry. Sentiment among single family homebuilders reached a 6 year high and has climbed for 8 straight months. Existing home sales rose to 5.9% in November over the previous month, the highest level in three years. Home construction starts dropped 3% in November, but permit applications rose.
Third quarter GDP was revised up to 3.1% in the measures third and final revision. Much of the increase was driven by onetime factors like government defense spending and a jump in business inventories. Expectations for the fourth quarter however have growth dropping to 1.3%.
Consumer spending in November reached its highest level since August 2009.
The Bank of Japan took additional monetary easing steps in order to fight deflation by increasing its asset purchase program by $120 billion.
UBS agreed to settle charges that it led a conspiracy to manipulate Libor during the credit crisis. The firm will pay $1.5 billion to settle the charges.
Oracle’s profit jumped 18% on strong sales for the quarter ending Nov 30th alleviating fears of a dip due to the fiscal cliff.
FedEx’s profit sank 12% in their fiscal 2nd quarter on global economic weakness which in turn has reduced shipping demand.
IntercontinentalExchange has agreed to purchase NYSE Euronext for $8.2 billion. The deal will create the second largest exchange by market cap and reflects the rise of electronic trading.
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