Financial News for the Week Ending June 21st

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 another record high on optimism around central bank easy money policies.  The S&P 500 gained 1.4% and the Dow rose 1.0%.  Internationally, Japan gained 1.7% and Europe added another 0.3%.  The ten year Treasury yield edged up over the week to finish at 2.63%.  Article

The European Union inflation rate fell to 0.6% in May down from 0.8% in April increasing the likely hood that other central banks will enact stimulus measures.

May posted the biggest jump in inflation in more than a year as prices rose 0.4% in the US.  It brings the rate of inflation to 2.1% from a year earlier.  This is slightly above the Fed’s target of 2%.  Article

The Fed once again cut its bond buying by $10 billion after its most recent meeting.  They revised down their projection of growth for the year to 2.2% from 3.0% in March driven by the rough winter.  In addition, they estimated that growth would be more robust in 2015 and 2016 and they expected that short term rates will be higher by the end of each year than they had previously projected. After 2016, however they projected less aggressive rate increases.  Article

Medtronic is buying medical device maker Covidien for $42.9 billion in another deal whose focus is in part to avoid paying US corporate taxes.

Amazon entered the smartphone business releasing its Fire phone.

Oracle posted a 4% decline in earnings and revenue growth of 3.4%.  Both numbers missed targets.

GE will buy the majority of engineering firm Alstom SA for between $11 and $13.6 billion after negotiating with the French government.  However, GE agreed to create more French jobs and tie up several businesses in joint ventures where the French government will have a stake.

The Patents and Trademark Office ruled that the Redskins name was derogatory and removed its trademark protection.

 

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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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