Financial News for the Week Ending May 31st
US stocks continued their march higher posting another record high to end May and the fourth straight positive month. Slow but steady economic improvement and corporate earnings that outpaced estimates drove the increase. The S&P 500 rose 1.2% for the week and 2.1% for the month. The Dow gained 0.7% for the week and 0.8% for May. International markets saw gains as well with Europe up 0.7% for the week and 1.9% for the month and Japan rose 1.2% for the week and 2.3% for May. Bonds also rallied over the month as the 10 year Treasury yield sank to 2.46%.
In the first revision of first quarter GDP it was announced the US saw growth contract at 1.0%. However, economist still believe the number was weather driven and that the economy will return to growth in the second quarter.
Durable goods orders rose 0.8% in April, however much of the gain was driven by a military order for submarines. Without the military order durable goods fell 0.8%.
Wage and salary growth was just 0.2% in April making the weakest increase in a year and presents a headwind for further improvement in the economy.
Bank’s net earnings dropped 7.6% in the first quarter year due to a drop in mortgage activity.
Apple agreed to buy Beats Electronics LLC for $3B. The move aims to bolster Apple’s music business as Beats has a streaming service and makes high end head phones.
Former Microsoft CEO Steve Ballmer bid $2 billion for the Los Angeles Clippers that has been accepted however Donald Sterling has vowed to fight the forced sale.
Ford recalled 1.38 million vehicles over power steering problems adding to the long list of car manufacturer recalls.
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