Financial News for the Week Ending April 20th
U.S. markets had their worst week of the year on disappointing earnings, plummeting commodity prices and weaker than expected economic reports. The S&P 500 and Dow dropped 2.1% for the week. Internationally, markets were down as well with Europe sinking 2.5% and Japan falling 1.3%. Investors moved into the safety of fixed income on growth worries as the 10 year Treasury fell to 1.707%.
Gold prices continued their freefall hitting a two-year low during the week before edging up to end the week.
China’s economic growth eased in the first quarter, surprising investors. The GDP growth rate dropped to 7.7% from 7.9% in the 4th quarter of 2012 raising fears that quickening growth in second half of 2012 is already slowing in China.
The CPI-U gained 1.5% in March over a year earlier below the Fed’s 2% target. The reading likely means the Fed remains comfortable with maintaining its easy money policies.
Citigroup, Goldman Sachs, American Express, Ebay, Google and GE all reported earnings that topped expectations, however many firms warned about growth moving forward.
Yahoo, Intel, Bank of America, Morgan Stanley, IBM, Microsoft and McDonald’s reported earnings that disappointed.
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.