Financial News for the Week Ending October 12th
U.S. stocks rebounded over the week on the prospect of a deal to avert a default and reopen the government. The S&P 500 gained 0.8% and the Dow rose 1.1% for the week. Internationally, markets rallied on the improved picture in the U.S. as well, with Europe up 0.6% and Japan gaining 2.7%. The 10 year Treasury ended the week up slightly at 2.68%.
President Obama elected to nominate Janet Yellen, the current Fed #2, to be the next Fed Chairman ending months of speculation.
The IMF cut its world growth forecast by 0.3% to 2.9% and dropped next year to 3.6% from 3.8%. They based this on the Fed exited from its current easy money policies and China targeted a more measured growth pace.
Retailers in the U.S. posted weaker numbers in September than expected. The numbers cast a cloud over expectations for the holiday shopping season.
Alcoa posted a slight profit to kick of earnings season. The aluminum producer posted lower sales, but was able to cut costs.
Wells Fargo’s earnings jumped 13% in the third quarter roughly in line with expectations. However, the bank’s weaker mortgage numbers signaled it might have a tougher road ahead.
J.P. Morgan had a loss in the third quarter related to the $9 billion it has set aside for settlements due to its multiple legal woes. It posted a loss of $380 million.
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