Financial News for the Week Ending July 13th
US stocks ended the week at a new record high over reassurances from Fed chairmen Ben Bernanke that the Fed would remain “highly accommodative” for the near future. The S&P 500 gained 3.0% for the week and the Dow rose 2.2%. It was the biggest weekly gain for the S&P 500 in seven months. Internationally, Europe gained 2.7% and Japan rose 1.4% over the week. The 10 year Treasury bill rose on the news that the Fed will not be as quick to end support. The yield ended the week at 2.61%. Oil rose to 105.95 a barrel, their highest level since March 2012, as oil inventories have fallen.
China’s premier reiterated the government’s policy to not intervene in the markets despite the county’s falling exports and overall slowdown in growth.
In a speech Fed Chairmen Ben Bernanke aimed to reassure markets and said the Fed does not intend to eliminate its easy money policies in the short term. While the Fed may wind down its bond purchase program later this year, increasing interest rates remains a distant move.
JP Morgan and Wells Fargo reported strong earnings in the second quarter with JP Morgan’s net income up 31% and Wells Fargo posting a 19% jump in net income from a year ago. The numbers beat estimates, but much of that was driven by a reduced amount of money set aside to cover bad debts. Both firms offered cautious outlooks given the rise in interest rates and their impact on their mortgage operations.
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.