June Leaves US Stocks in Negative Territory

Financial News for the Week Ending June 29th

The US stock market had its best first half of the year since 1999 with the Dow up 15.2% and the S&P 500 up 13.8% on a total return basis on generally improving economic conditions and continued Fed support. However, June ended the month in negative territory as the continued degree of the Fed’s support has come into question and China was involved in a liquidity crisis; the Dow and S&P 500 were down 1.3%. Gold had its worst month since the beginning of modern gold trading in 1974. The 10 year Treasury saw its yields spike on the news of the Fed potentially withdrawing support. Yields rose from 2.16% to start June to 2.52% to end the month.

New home sales rose to the highest level in almost 5 years in May and home prices in April rose 12.1% over the year earlier.

China’s central bank announced it has provided liquidity for some banks and will step in if needed to help ease the country’s recent liquidity crisis and help soothe the market.

GDP was revised down to 1.8% in the first quarter from the prior estimate of 2.4%. Consumer spending was revised down. Business spending rose 0.4% in the first quarter and remains 4% below pre-recession levels. The weaker numbers hint that the US economy isn’t on as sound a footing and could prolong the Fed’s intervention.

Thirty Year mortgage rates have risen to 4.46% from 3.74% a month 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.

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