US Existing Home Sales Rose in September

Financial News and Portfolio Management Discussion through October 24th

Global stocks rallied on more stimulus from China and likely from Europe along with solid corporate earnings. The S&P 500 gained 2.1% and the Dow rose 2.5%. Internationally, Japan climbed 3.0% and Europe jumped 3.9% for the week. The yield on the 10 year Treasury rose over the week to finish at 2.08%.

ECB president Draghi stated that the central bank is prepared to do more to raise inflation and drive growth.

China’s third quarter growth fell below the 7% level it targets to 6.9%. It’s the weakest pace of growth since the financial crisis. However, growth outpaced expectations of a 6.8% rate.

China announced it was cutting its central bank benchmark lending rate a quarter percentage point. They also reduced banks reserve requirement ratios by half a percent freeing up capital to lend. It was the 6th interest rate cut and fourth reserve requirement reduction since November.

US housing starts rose 6.5% in September driven by multifamily housing and home builder confidence rose higher than expected.

US existing home sales rose 4.7% in September putting the market on track for its best year since 2007.

Amazon, Microsoft, American Airlines, McDonalds, Alphabet, Proctor and Gamble, AT&T, Ebay and GM all topped expectations for the past quarter, while Yahoo, Morgan Stanley and IBM disappointed investors.

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

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