US stocks posted a down week driven by global economic worries and weakness from the biotech sector. The S&P 500 sank 1.4% and the Dow edged down 0.4% for the week. Abroad, Europe fell 1.5% and Japan dipped 1.0% for the week. The yield on the 10 year treasury edged up to end at 2.17%.
Existing home sales sank 4.8% in August, larger than expected. The fall was pronounced in areas which have seen the steepest price increases. The median home price is up 4.7% over a year ago.
A preliminary reading in September factory output showed activity slipped to its slowest level since 2009.
New home sales reached their highest level since 2008.
Durable goods orders fell 2% in August from a month earlier showing business spending remains weak.
In a speech Fed chairwomen Janet Yellen stated that she expected the Fed to raise interest rates before the end of the year as she expected inflation pressures to begin to build.
The second revised reading of 2Q GDP showed that growth was even stronger than previously estimated. Second quarter GDP rose 3.9%, driven by consumer spending, revised from the previous 3.7% estimate. It rose 2.3% for the first half of the year, outpacing the first half of 2014.
As the scandal around VW continued to mount they announced they would take a $7.3 billion charge, cut their full year outlook and said that up to 11 million vehicles could be affected. VW relived its CEO of his duties over the scandal and named Matthias Muller, the Porsche head, as its new CEO.
Caterpillar announced it would cut 10,000 jobs as it expects weak demand for its building products to continue.
Nike posted strong earnings topping estimates.
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