Financial News for the Week Ending May 31st

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

US stocks continued their march higher posting another record high to end May and the fourth straight positive month. Slow but steady economic improvement and corporate earnings that outpaced estimates drove the increase.  The S&P 500 rose 1.2% for the week and 2.1% for the month.  The Dow gained 0.7% for the week and 0.8% for May.  International markets saw gains as well with Europe up 0.7% for the week and 1.9% for the month and Japan rose 1.2% for the week and 2.3% for May.  Bonds also rallied over the month as the 10 year Treasury yield sank to 2.46%.  Article

In the first revision of first quarter GDP it was announced the US saw growth contract at 1.0%.  However, economist still believe the number was weather driven and that the economy will return to growth in the second quarter.  Article

Durable goods orders rose 0.8% in April, however much of the gain was driven by a military order for submarines.  Without the military order durable goods fell 0.8%.

Wage and salary growth was just 0.2% in April making the weakest increase in a year and presents a headwind for further improvement in the economy.

Bank’s net earnings dropped 7.6% in the first quarter year over year due to a drop in mortgage activity.

Apple agreed to buy Beats Electronics LLC for $3B.  The move aims to bolster Apple’s music business as Beats has a streaming service and makes high end head phones.  Article

Former Microsoft CEO Steve Ballmer bid $2 billion for the Los Angeles Clippers that has been accepted however Donald Sterling has vowed to fight the forced sale.  Article

Ford recalled 1.38 million vehicles over power steering problems adding to the long list of car manufacturer recalls.

 

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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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