Financial News and Portfolio Management Discussion through November 6th
US stocks rose over the week on easing concerns of global growth. The S&P 500 gained 1.0% and the Dow rose 1.4% for the week. Abroad, Europe increased 1.2% and Japan was up 0.9% for the week. The US Dollar hit a near 13 year high on expectations of a Fed interest rate increase in December. Interest rates rose with the 10 year yield rising to 2.33%, its highest level since July, and the two year yield rose to its highest level in over five years. Oil is near its year low of $44.29 a barrel.
The October employment report surpassed expectations with 271,000 positions added and an upward revision of 12,000 for August and September. The monthly average for the year moves up to 206,000 and the unemployment rate fell to 5% its lowest since level since April of 2008. Earnings perked up as well with average hourly earnings up 2.5% for the past year. It’s the best trailing year performance since 2009.
The jobs report brought high expectations that the Fed would raise interest rates at its December meeting.
A measure of Chinese factory activity decelerated less than expected.
US manufacturing grew at its weakest level in over two years in October and the pace of growth has declined for four straight months.
US auto sales rose 13.6% in October and are on pace to post the best sales year ever.
China said it may lower its growth target and that the country could tolerate growth as low at 6.5%. Its target rate had been 7%.
In testimony before congress Fed Chief Yellen said that a December rate hike was a “live possibility.”
China is set to lift the ban on IPOs it imposed in the throes of market turmoil in July.
Drug maker Shire agreed to buy biotech firm Dyax for $6.5 billion.
Activision purchased King Digital for $3.4 billion in a combination of major video game companies.
Disney, Facebook and Berkshire Hathaway all met or exceeded expectations for the quarter, while Tesla and Toyota missed 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