Financial News for the Week Ending July 13th

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

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

US stocks ended the week at a new record high over reassurances from Fed chairmen Ben Bernanke that the Fed would remain “highly accommodative” for the near future.  The S&P 500 gained 3.0% for the week and the Dow rose 2.2%.  It was the biggest weekly gain for the S&P 500 in seven months.  Internationally, Europe gained 2.7% and Japan rose 1.4% over the week.  The 10 year Treasury bill rose on the news that the Fed will not be as quick to end support.  The yield ended the week at 2.61%.  Oil rose to 105.95 a barrel, their highest level since March 2012, as oil inventories have fallen.   Article

China’s premier reiterated the government’s policy to not intervene in the markets despite the county’s falling exports and overall slowdown in growth.

In a speech Fed Chairmen Ben Bernanke aimed to reassure markets and said the Fed does not intend to eliminate its easy money policies in the short term.  While the Fed may wind down its bond purchase program later this year, increasing interest rates remains a distant move.  Article

JP Morgan and Wells Fargo reported strong earnings in the second quarter with JP Morgan’s net income up 31% and Wells Fargo posting a 19% jump in net income from a year ago.  The numbers beat estimates, but much of that was driven by a reduced amount of money set aside to cover bad debts.  Both firms offered cautious outlooks given the rise in interest rates and their impact on their mortgage operations.

 

 

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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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