Financial News for the Week Ending August 30th
US Stocks ended August at a new record high as stocks recovered over the month from an early swoon driven by geopolitical issues. Expectations of additional action by the ECB also helped spur the stock market over the past week. The S&P 500 rose 1.1% over the week and 4.0% for the month rising above the 2,000 level and the Dow gained 1.1% for the week and 3.2% for the month. Internationally, Japan sank 1.3%, while Europe rose 1.8% for August. The yield on the 10 year Treasury finished the month at 2.35% near a 14 month low.
The first revision of 2Q GDP showed growth was even higher in the second quarter as it was revised up from 4% to 4.2% driven by corporate profits.
Sales of new homes fell 2.4% in July. New home sales have stalled while existing home sales have continued to grow.
Durable goods orders spiked, rising 22.6% in July to post the best month ever. Much of the jump was driven by airplane sales however, growth was fairly broad-based and portends improving growth in the second half.
Reports showed a drop in business and consumer confidence in the euro zone and an increase in German unemployment.
The Euro zone inflation rate fell to a five-year low in August hitting 0.3% down from 0.4% in July.
The Commerce Dept. reported that consumer prices rose 1.6% in July over a year ago. Core price rose 1.5% with both up 0.1% from the prior month. The rate remains below the Fed target of 2%.
Photo courtesy of http://www.nypost.com
Burger King announced it is pursuing Canadian coffee and doughnut chain Tim Horton’s in a deal valued around $12.5 billion. The move is another of the recent inversion moves moving the Burger King headquarters to Canada. Warren Buffett is also backing the deal with Berkshire Hathaway providing about 25% of the deals capital.
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