Financial News for the Week Ending June 1st
US Stocks slid to finish the week, but had another positive month on generally positive economic news. Volatility picked up to end the month as the market began to debate when the Fed would end its bond purchase program. The S&P 500 sank 1.1% for the week, but rose 2.1% for the month. The Dow dropped 1.2% over the week, but was up 1.9% for May. Both indices have seen six straight months of gains. Europe was down slightly less dropping 0.8% for the week, and was flat for the month. Japan had a shaky week as the Nikkei fell 5.7% and it finished the month down 0.6% ending a nine month winning streak. Yields on the 10 year Treasury climbed over the week to finish at 2.16%, the highest level since early April of 2012.
First quarter GDP was revised down slightly to 2.4% from the previous estimate of 2.5%. US consumers remain the driving force behind the growth.
Core prices in April rose 1.1%, the lowest increase since the Commerce Department began tracking the number in 1960. Overall prices rose just 0.7%. The numbers take pressure off the Fed to wind down their bond purchase program due to any fear of accelerating inflation.
Consumer spending sank in 0.2% in April despite consumer confidence hitting a 6 year high.
The Euro zone unemployment rate hit a new record high of 12.2% in April.
Chinese firm Shuanghui International holdings, the largest meat processor in the country, reached an agreement to purchase Smithfield Foods, the world’s largest pork processor, for $4.7 billion. It would be the largest takeover ever for a Chinese firm of an American company.
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.