Financial News and Portfolio Management Discussion through August 29th
Global markets were whipsawed during the week driven by concerns over China’s growth with most markets finishing up. After plunging over the first two days markets rallied heavily over the next two days. The S&P 500 rose 0.9% and the Dow gained 1.1% for the week. Internationally, Japan sank 1.5%, while Europe edged up 0.6% for the week. The 10 Year Treasury yield rose to 2.19% over the week as equity market volatility eased. Oil prices also bounced around falling below $40 a barrel before rallying over 10% and finishing the week at $45.22.
In response to the plunge in its markets China cut interest rates a quarter point and flooded its banking system with cash.
The NY Fed Chief said in a statement that a rate increase in September has become “less compelling” in light of China’s slowdown and the recent market events.
Durable goods orders, a measure of business investment came in higher than expected in July and June was revised up.
In its second revision of 2Q GDP the Commerce Dept. announced that GDP grew at a 3.7% rate instead of the 2.3% initially estimated. Consumer spending grew and helped drive the increase.
Brazil’s GDP contracted 1.9% in the second quarter, worse than expected, and fell for the second consecutive quarter putting the economy in recession.
Consumer spending rose 0.3% in July matching June’s pace. In addition American incomes rose 0.4%.
Best Buy surprised investors with an increase in earnings and a larger market share.
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