Financial News and Portfolio Management Discussion through September 23rd
US Stocks edged up over the week led by bank stocks who reacted positively to the potential for another Fed rate increase this year. The S&P 500 rose 0.1% and the Dow gained 0.4% for the week. Internationally, Europe climbed 0.7% and Japan jumped 2.0% for the week. The yield on the 10 year Treasury rose again for the week finishing at 2.26%.
At the conclusion of its September meeting the Fed announced it would begin shrinking its balance sheet in October by letting bonds mature and not reinvesting the proceeds. It will let $10 billion in bonds it holds mature each month increasing the amount by $10 billion every quarter until it reaches $50 billion. It also signaled that another rate hike this year was on the table.
Housing starts fell 0.8% in August driven by a large decline in multifamily housing.
S&P dropped China’s credit rating to A+ from AA- due to high debt levels. The move now matches the two other credit rating agencies
Northrop Grumman agreed to purchase Orbital ATK, for $7.8 billion in a bid to strengthen its space focused defense capabilities.
Toys ‘R’ Us filed for bankruptcy.
HP Enterprise plans to cut 10% of its workforce.
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.
Image courtesy of nytimes.com