Financial News and Portfolio Management Discussion through June 17th
US stocks rose slightly over the week as the outcome of the Fed meeting was in line with expectations. The S&P 500 edged up 0.1% and the Dow rose 0.5% for the week. Internationally, Japan ticked down 0.3% and Europe eased 0.5% for the week. The yield on the 10 Year Treasury edged up to 2.16% near its lowest level of the year. Oil prices fell to $44.73 a barrel its lowest level of 2017 on news of still high levels of inventory. For the year oil is down 17%. The price decline show the limitations of OPEC production cuts.
At the Fed’s June meeting, as expected, it raised the Fed Funds rate a quarter percent to a range between 1% and 1.25%. They still expect to raise interest rates one more time this year. It also spelled out how it would begin to unwind its $4.5 trillion bond portfolio later this year. It will start by letting $6 billion in Treasury securities and $4 billion in mortgage bonds mature without being reinvested and let that increase until a maximum of $30 billion in Treasuries and $20 billion in mortgages a month mature.
Amazon agreed to buy Whole Foods for $13.7 billion upending the grocery business.
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.