Financial News and Portfolio Management Discussion through June 6th
US stocks fell over the week on Greece concerns and greater expectations for a Fed rate hike this year. The S&P 500 fell 0.7% while the Dow sank 0.9%. Internationally, Japan dropped 0.5% and Europe plummeted 2.7%. The yield on the 10 Year Treasury soared as the jobs report made a rate increase as soon as September more likely. The yield ended the week at an 8 month high of 2.40%.
The May jobs report topped expectation with 280,000 new hires and the unemployment rate ticked up to 5.5% as more people joined the workforce. In addition, there were 32,000 additional hires in April and March than previously estimated. Also the average hourly earnings rose 2.3% from a year earlier, faster than the recent pace.
Based on the most recent jobs report numbers expectations are high that rates will be raised this year with expectations of a September rate increase the highest.
Greece continues to negotiate with its European creditors and expectations are that a deal would not be achieved until the a payment is owed to the IMF this month.
Personal spending inched lower in April foiling hopes that consumers would help accelerate the countries growth in the second quarter.
US auto makers posted solid sales in May with the best monthly results since July 2005.
Retail sales rose 0.7% in April in the eurozone and the unemployment rate fell to 11.1% its lowest level in 3 years.
US productivity dropped 3.1% in the first quarter, revised down and below 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