Financial News and Portfolio Management Discussion through June 4th
Stocks were little changed for the week on the weak May jobs report. The S&P 500 was flat and the Dow fell 0.4% for the week. Internationally, Europe sank 2.4% and Japan fell 1.1% for the week. The yield on the 10 year Treasury finished the week at 1.71% near the low of the year and down from 1.85% the previous week as rate increase expectations dropped on the jobs report.
Photo courtesy of ooyuz.com
The May jobs report fell well short of expectations with only 38,000 new hires, the weakest report in over five years. In addition March and April hiring were revised down to show 59,000 fewer jobs added. The news dropped the likelihood for a rate hike in the near term. The unemployment rate declined to 4.7% from 5% due to more people dropping out of the workforce.
The S&P Case Shiller Home price index rose 17% in April from a month earlier, the strongest gain in eight years. Home prices are now within 4% of their 2006 peak. However the recovery has been uneven with first time home buyers largely being left out and wealthy home buyers with their pick of homes.
Factory activity expanded at a greater than expected clip in May posting the third straight month of expansion.
US auto sales dipped in May dropping 6% from a year earlier.
The ECB elected to make no changes to its stimulus program and, despite little improvement in inflation, remained optimistic. They did state, however, if there was not further improvement later in the year they would not hesitate to act.
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