Financial News for the Week Ending November 16th
US stocks ended the week at another record high, the sixth straight week of gains, on confidence the Federal Reserve will continue their support for the economy. The S&P 500 rose 1.6% and the Dow gained 1.3%. Abroad, Japanese stocks rocketed up 7.7% on a weakening yen and Europe was flat gaining 0.1% on concerns about weakening growth and low inflation. The 10 year Treasury yield eased as bonds rose, finishing the week at 2.71%.
Japan’s third quarter GDP dropped to 1.9% well below the 3.8% pace in the second quarter on weaker domestic consumption and falling exports to emerging markets. However, the number was slightly higher than economists’ expectations.
The Euro-zone’s third quarter GDP rose 0.1% well off from the second quarter pace adding to fears Europe could be entering a “lost decade.”
Janet Yellen testified before a senate banking committee as part of her confirmation and stated that she believes it necessary to continue the easy money policies as long as the economy needs the support, but won’t hesitate to cut back if the economy improves.
The merger between US Airways and American Airlines was allowed to go through after a few small concessions to the US government. The merger creates the world’s largest airline by traffic.
Of the 460 firms in the S&P 500 to report earnings 73% have beaten analysts’ forecasts.
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