Financial News for the Week Ending February 8th
US markets gained over the week bouncing back from a weak start to end the week on two solid days despite the disappointing jobs report. Investors shrugged it off as there were some positive signs in the report and they believed it could prompt the Fed to take additional action if there was protracted economic weakness. The S&P 500 rose 0.8% and the Dow gained 0.6% for the week. Internationally, Europe rose 0.8%, but Japan sank 3.0%. Bonds rose for the week on global growth worries with the 10 year Treasury yield sinking to 2.68%.
The January jobs report fell far short of expectations with 113,000 jobs added below the 170,000 expected. It’s the weakest two month stretch of job creation in three years. The unemployment rate did drop to 6.6%, its lowest point since 2008, and the labor force participation rate ticked up to provide some positive news.
Factory output in the US grew at a slower pace in January than expected adding to market jitters.
January car sales fell for the first time since September with bad weather being a primary factor. All major automakers saw their January sales fall compared to a year ago.
After its most recent meeting the ECB announced no new rate cuts but stated it stood ready to act.
S&P lowered its credit rating on Puerto Rico’s debt to junk status on its increasing obligations and reduced access to the credit markets.
Microsoft named Satya Nadella as the new CEO, a Microsoft insider who headed their cloud based computing group. Bill Gates will give up his role as chairman to be Nadella’s technical advisor.
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