Financial News and Portfolio Management Discussion through November 28th
US markets were mostly flat on the holiday shortened week. The S&P 500 and Dow eased 0.1% for the week. Abroad for the week, Japan edged up 0.1% and Europe rose 0.5% on hopes for more ECB stimulus. The US dollar hit a 13 year high as the US and Europe move in opposite monetary policy directions. The 10 year Treasury fell over the week ending at 2.22%.
October existing home sales fell 3.4% from September as low inventory and higher prices were obstacles for buyers. However, the housing market is still on pace to have its best year since 2007.
The revised third quarter GDP number rose to 2.1% from the 1.5% initial estimate.
The US savings rate reached the highest level in nearly 3 years despite increases in wages.
Pfizer and Allergan reached an agreement to merge in a deal valued at over $150 billion. The deal would create the world’s biggest drugmaker and it would be the largest inversion ever; the process by which a US firm moves it headquarters abroad to receive more favorable tax treatment.
Third quarter earnings at US companies fell 4.7% from a year earlier, the largest decline since the financials crisis. However, this still topped the 5.1% drop expected. A rising dollar and weak global demand weighed on profits.
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