Financial News for the Week Ending June 8th

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

US stocks surged on the solid jobs report to end the week.  The Dow posted it second best day of the year gaining 1.4% and rose 0.9% for the week.  The S&P 500 added 1.3% on Friday and gained 0.8% for the week.  Japanese stocks dropped 6.5% over the week as country’s stock market continues to retreat after its months long surge and Europe sank 1.8%.  On the positive jobs news the 10 year Treasury rose to 2.16%.

Job growth continues to be slow and steady as employers added 175,000 jobs in May mostly in line with expectations.  However, the report wasn’t so strong that it is likely to change the Fed’s course of buying $85 billion in bonds a month.  The unemployment rate ticked up to 7.6% as more job seekers entered the workforce. 

The Fed is expected to indicate after their next meeting later in June that they will begin to ease their bond buying program later this year. 

Thirty year mortgage rates have jumped at the prospect of the Fed’s bond buying program subsiding.  The average 30 year rate has risen to 3.81%, its highest level since May 2012. 

US auto sales rose in May but the rally in car sales has shown sings on plateauing.

US manufacturing contracted in May having their worst month since the end of the recession.  Europe’s manufacturing also contracted for the 22nd straight month and even stalwart Germany sank for the third month in a row. 

The ECB took no new steps at the conclusion of its most recent meeting, but lowered its forecast for growth for the year.

About

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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