Financial News and Portfolio Management Discussion through January 23rd
US stocks posted their first positive week for the year on a bounce in oil prices. The S&P 500 rose 1.4% and the Dow gained 0.7% for the week. Internationally, Europe jumped 2.6%, but Japan fell 1.0% for the week. The 10 year Treasury yield ticked up slightly over the week to finish at 2.07%. Oil, after falling below $27 a barrel, finished the week at $32.19.
China’s growth slowed to its weakest pace in over 25 years growing at a 6.9% rate in 2015 and 4th qtr GDP of 6.8% was below expectations.
In a speech ECB president Draghi said the ECB could be willing to take on additional stimulus measures in March in response to meager growth and low inflation.
Analysts expect corporate profits to fall 4.7% in the fourth quarter which would make it the third consecutive quarter of declining profits, the longest stretch since the financial crisis.
BofA, United and Southwest posted positive earnings reports, while Shell, Goldman, American Express, Union Pacific, and GE posted weak profit reports.
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.