Financial News for the Week Ending August 16th
US Stocks gained ground over the week as international tensions eased over much of the week. The S&P 500 rose 1.2% and the Dow was up 0.7% for the week. Internationally, Japan rose 3.7% and Europe gained 1.5%. Due to news of an attack by Ukraine on Russian armored vehicles, the German 10 Year government bond yield finished below 1% on the week for the first time ever. The 10 year US Treasury bond yield fell as well sinking to 2.34% its lowest level since June of last year.
Japan’s 2Q GDP contracted 6.8% as a new sales taxes hit consumers hard, however it was less of a contraction than economist had projected.
Single family home prices rose 4.4% in the year ended in June. The slowest pace since 2012 and the home market shows signs of cooling.
July retail sales were flat showing the economy is still struggling to gain momentum.
Growth in Europe has halted once again in the second quarter with no growth compared to the previous quarter in the euro zone and just 0.2% on an annualized basis as Italy, Germany and France all posted negative or no growth for the quarter. Over the past year the euro zone has grown just 0.7%.
Cisco’s second quarter results disappointed and the company announced cutting 6,000 jobs or 8% of its workforce.
Wal-Mart store traffic continued to sink, sales and profit were flat and the firm cut its earnings guidance for the rest of the year.
Coca-Cola agreed to purchase 16.7% of energy drink maker Monster Beverage for $2.15 billion.
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