Financial News for the Week Ending January 26th
The S&P 500 crossed the 1,500 point barrier for the first time in over five years to finish the week at 1,503. Friday was the 8th consecutive day of gains, the longest streak since 2004. For the week the S&P 500 rose 1.1% and the Dow gained 1.8%. Positive earnings reports, a delay on contentious issues in Washington and the Fed’s bond purchases have all helped the US stock market’s recent run. The 10 year Treasury bill’s yield continues to rise with the improvement in stocks. It ended the week at 1.947%. Internationally, Japan was flat and Europe was up 0.9% for the week.
Apple’s earnings were flat despite setting a record for iPhone and iPad sales, disappointing investors. Apple’s stock dropped 14% to end the week and fell back below Exxon for the title of the world’s largest company by market cap. Apple has lost $245 billion in market cap since September.
IBM, Google, McDonalds, Netflix, Starbucks, Nokia, Samsung and P&G all had positive earnings announcements with many raising 2013 expectations.
Positive US economic readings included initial jobless claims’ falling to almost a 5 year low and new home sales rising 20% in 2012.
The Bank of Japan announced it would aggressively fight deflation in the country by initiating monetary easing measures.
Spain and the U.K. both saw GDP contract in the 4th quarter.
European banks who took loans from the ECB are repaying them much faster than anticipated showing financial markets in Europe are in a much healthier state than just over a year ago.
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.