All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.
U.S. stocks rose for the week as action in Syria has been delayed and on some positive economic news. The unemployment number’s weakness also suggests that the Fed might not move quite as fast to taper their bond purchase program. The S&P 500 rose 1.4% and Dow gained 0.8% for the week. Internationally, Japan rose 3.5% and Europe was up 3.0% for the week. The 10 year Treasury rose on the weaker jobs report to end the week at a yield of 2.936%. Article
U.S. employers added 169,000 jobs in August, which fell below estimates. The unemployment rate did drop from 7.4% to 7.3%, but it was a result of more people dropping out of the workforce. The labor participation rate has reached the lowest level since 1978. July’s hiring number was also sharply revised from the previously reported 160,000 to 104,000. The numbers provide a picture of a flat labor market. Article
U.S. manufacturing accelerated at its fastest level in over two years in August. It’s the third month in a row of rising growth in the sector.
U.S. new car sales notched another month of strong gains in August rising 17% from a year ago and have now reached a pre recession level of sales. Article
ECB leader Mario Draghi in announcing that rates would remain at 0.5% said the recovery in Europe is still very early on and there could even be further rate cuts. Thus easy money policies in the country bloc appear to be in place for the foreseeable future. The Bank of England also announced it would not adjust interest rates from their current low level and would maintain their bond purchase program.
Verizon purchased Vodafone’s 45% stake in Verizon Wireless for $130 billion in the second largest acquisition in history. Verizon paid more than they had hoped in order to secure full control of its business when financing remained cheap. Article
Microsoft agreed to buy Nokia’s cell phone unit for $7 billion in a move to try to catch up in the cell phone business which is dominated by Samsung and Apple.
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