Financial News and Portfolio Management Discussion through June 3rd
Global stocks hit fresh record highs to end a strong week for world markets. Stock price gains were driven by corporate profits and signs of economic strength. The US, South Korea and Germany all posted records on Friday. The S&P 500 gained 1.0% and the Dow rose 0.6% for the week. Internationally, Japan jumped 2.5% and Europe edged up 0.3% for the week. The yield on the 10 year Treasury fell to 2.16% the lowest level since just after the presidential election as investors believe the Fed will take a slow and steady pace with interest rate increases.
The US added 138,000 jobs in May, well below estimates. Hiring numbers were revised down for the previous two months by 66,000. The unemployment rate fell to 4.3% its lowest level in 16 years.
US manufacturing remained in expansion territory in May and picked up pace from April.
Illinois was downgraded by both S&P and Moody’s and is now on the verge of being the first US state with junk rated bonds.
ECB President Draghi said that despite the improving economic picture in Europe the bank is not ready to cut back on its stimulus.
Personal consumption expenditures rose 0.4% in April the largest one month increase since December.
The Fed’s preferred measure of inflation ticked up 0.2% in April, but year over year prices rose 1.7% compared to 1.9% in March.
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.