Pending Home Sales Slip, Lowest Since December 2012

Financial News for the Week Ending November 2nd

After hitting record highs during the week markets settled slightly higher on positive economic news.  The S&P 500 gained 0.1% and the Dow was up 0.3%.  Internationally, Japan rose 0.8% and Europe was up 0.4%.  The yield on the 10 year Treasury rose to 2.61%.

Pending home sales fell 5.6% in September from August from a combination of higher mortgage rates and higher prices.  They are at their lowest level since December 2012.

Retail sales rose 0.4% in September.

Concerns are rising that Europe’s inflation rate might be rising too slowly.  The rate fell to 0.7% in October from 1.1% in September to its slowest pace since the financial crisis.  Europe wants to avoid the fate of Japan which struggled with low inflation for two decades.

US manufacturing rose to its highest level since 2011 in October despite the government shutdown for a portion of the month.

China’s manufacturing index reached an 18 month high and new home prices rose.

With half of the companies in the S&P 500 reporting, 75% have beaten profit estimates, while 52% have beaten revenue estimates.  Earnings are up 2.3% over last year.

Apple had its third straight quarter of falling earnings, however there are signs that profit margins and prices are stabilizing. The firm sold 26% more iPhones this year than last year.

Berkshire Hathaway’s earnings rose 29% in the third quarter driven by housing railroad and consumer sectors.

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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