Financial News and Portfolio Management Discussion through August 27th
Stocks fell over the week as investors saw an interest rate hike from the fed as more likely. The S&P 500 eased 0.7% and the Dow ticked down 0.8% for the week; their largest declines since the Brexit vote. Abroad, Europe rose 1.1%, while Japan fell 1.1% for the week. The yield on the 10 Year Treasury bond rose over the week to 1.63% with increased expectations for an interest rate increase. It is at its highest yield since the Brexit vote.
In a speech at a Fed retreat Fed Chair Yellen stated that the Fed is likely to raise rates in the weeks and months ahead if economic data continues to improve with an increase in September on the table.
New home sales in July rose to the highest level in close to a decade topping expectations. Through July new home sales are up 12.4% compared to 2015. Sales of previously owned homes dipped in July falling 3.2% from June and 1.6% from last year as higher prices weigh on demand.
Durable goods orders bounced back in July, rising 4.4% in a positive sign for the manufacturing sector and besting estimates.
Second quarter GDP was revised down slightly to 1.1% from 1.2%. Consumers increased spending during the quarter, while businesses reduced their outlays.
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