Financial News for the Week Ending January 19th
The Dow had its highest finish since December 2007 on positive earnings over the week and news that a deal to extend the debt ceiling for three months was being finalized. For the week, the S&P 500 gained 0.9% and Dow rose 1.2% to post their third straight weekly gain. Small cap stocks measured by the Russell 2000 reached their highest close ever on Friday.
Retail sales, new home construction, and industrial production gained 4.7%, 37%, and 2.2% respectively from a year earlier, beating expectations.
Germany’s economy contracted 0.5% in the 4th quarter resulting in a 2012 GDP of 0.7% showing the country was not the engine of growth for the euro zone it was expected to be.
China’s GDP rose 7.9% in the 4th quarter up from 7.4% in the 3rd quarter and surpassed expectations. The reading marked improved growth after 2 years of easing.
Apple cut its order for parts for the iPhone 5 in half on weak demand for the product.
Facebook announced it is releasing a new search tool for its site that will allow users to search friends’ profiles. The move is seen as competition for Google.
Goldman Sachs, J.P. Morgan, G.E. and Morgan Stanely all posted earnings that outpaced expectations, while Intel, Citigroup and Bank of America all announced tepid results.
After several issues the FAA ordered all Boeing 787 Dreamliners grounded so that additional inspections can be completed.
Reposted from the Raffa Wealth Management Blog.
All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.