Financial News for the Week Ending October 19th
U.S. stocks ended the week at a new all time high driven by positive earnings numbers and a last minute deal to reopen the government and raise the debt ceiling. The S&P 500 reached 1,744 up 2.4% for the week while the Dow gained 1.1%. Internationally, Japan rose 12.1% and Europe was up 2.2% for the week hitting their highest level since June 2008. The 10 year Treasury yield fell to 2.59% and bonds rose on the news of the government agreement.
Congress reached an agreement to raise the debt ceiling and reopen the government, narrowly beating the deadline. The government will now have operating funds through mid January and the debt ceiling will be raised through February 7th.
China’s growth picked up in the third quarter with GDP coming in at 7.8%, the fastest pace since the 4th quarter last year and in line with economists’ estimates.
Apple announced it was hiring Burberry’s former CEO Angela Ahrendts to fill their retail chief position in a hope to revive sales growth.
Earnings season is in full swing. Over the week Yahoo, Intel, Citigroup, IBM and Goldman Sachs, all had earnings reports that disappointed, while B of A, Blackrock, Charles Schwab, Google, GE and Morgan Stanley all posted positive numbers.
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