Financial News for the Week Ending January 11th
US stocks were up for the week on some positive economic news and reassurance of support from the Fed. The Dow was down 0.2%, while the S&P 500 rose 0.6% for the week. Internationally, Europe rose 0.7%, but Japan was down 2.3%. On the weak US employment news bonds staged a rally with the 10 year Treasury yield finishing the week at 2.86% down from the 3.0% level of the prior week.
The December jobs report disappointed as only 74,000 jobs were added. The number falls far below the improving growth that recent economic readings have hinted at. Poor weather during the month could potentially have been a factor causing the low tally. The jobless rate did fall below 7.0% to 6.7%, however that was a result of less people looking for work.
Janet Yellen was confirmed by the Senate to become the first women to lead the Federal Reserve.
US exports hit a record high in November and the trade deficit sank to its lowest level since 2009 providing more hope for growth in the economy in 2014.
The ECB announced it would take “decisive action” if inflation fell to low levels surprising investors with their emphatic supportive stance.
JP Morgan agreed to pay $2.6 billion to resolve charges it was negligent in reviewing Bernard Madoff’s financial activities. JP Morgan has now paid $22 billion in the past year to resolve lawsuits and investigations to a variety of charges.
Reposted from the Raffa Wealth Management Blog.
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