Financial News and Portfolio Management Discussion through January 17th
US stocks sank as investors were concerned over weak corporate earnings and global growth. The S&P 500 and Dow fell 1.3% for the week. Internationally, Japan dropped 2.0%, while Europe jumped up 4.3%. The surge in Europe was driven by expectations of strong action taken by the ECB. The yield on the 10 year Treasury reflected the souring mood as it fell to 1.82%. Oil was flat for the week finishing at $48.69 a barrel.
US retail sales fell 0.9% in December, however excluding gas, sales rose 5.3% from the prior year.
The Swiss National Bank made a surprise announcement that it would relinquish its cap on the Swiss Franc vs the euro. Immediately after the move was announced the franc advanced 30% against the euro ending the day gaining 17.5%. The move caused much turmoil in currency markets and sent global bond yields to fresh lows.
The EU saw prices fall 0.1% for the first time ever.
US consumer prices rose just 0.8% in December from a year earlier driven by falling gasoline prices. Excluding food and energy prices are up 1.6%.
Large banks largely issued disappointing earnings reports as JP Morgan, Bank OF America, Citigroup and Goldman Sachs all saw profits fall and miss analysts expectations on weakening revenue and legal expenses. On the positive sign Wells Fargo, SunTrust and PNC met or exceeded expectations.
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