Financial News and Portfolio Management Discussion through May 30th
US Stocks fell over the week on mixed economic data and fresh concerns about Greece. The S&P 500 sank 0.9% and the Dow fell 1.2% for the week. However, for the month, both indices rose 1.0%. Internationally, Japan rose 1.5%, but Europe fell 1.9% for the week. In May, Japan surged 5.3% and Europe was up 1.0%. The 10 year Treasury yield fell to 2.10% on US economic concerns.
The second revision to 1st quarter GDP showed the country contracted at a 0.7% rate. Tough winter weather, a strong dollar and a labor dispute at west coast ports were the main drivers. However, the revision was not as bad as feared.
The leader of the IMF, Christine Lagarde, stated that Greece leaving the euro is a possibility.
New home sales rose 6.8% in April and prices rose 8.3% from a year earlier showing rising demand in a tight market.
Durable goods orders fell 0.5% in April from March and are down 1.3% from a year earlier. However the declines were driven mostly by the volatile transportation sector. Excluding that sector orders rose and March was revised up.
Orders for nondefense capital goods, a proxy for business investment rose 1% in April.
Charter Communications agreed to purchase Time Warner for $55 billion, which would make the company one of the largest US broadband and pay television companies.
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