Financial News and Portfolio Management Discussion through November 3rd
US stocks rose over the week and ended at record highs on strong corporate earnings and potential tax reform. The S&P 500 gained 0.3% and the Dow rose 0.4% for the week. Internationally, Japan soared 2.4% and Europe climbed 0.7% for the week. The yield on the 10 Year Treasury finished the week at 2.34%, down from the previous week. Oil prices reached their highest level since July 2015, $55.64 a barrel, up 3.2% for the week.
Jerome Powell was nominated to be the next Fed Chairmen. He is expected to continue current Chairwomen’s Yellen’s policies.
Auto makers reported solid October sales.
The Fed left interest rates unchanged at its most recent meeting, but stated they remained on pace for one more interest rate increase this year. They have one remaining meeting in mid-December.
Republicans unveiled their proposed tax overall reducing corporate taxes down to 20% from 35% and making a number of changes to personal taxes.
US companies hired 261,000 new employees in October falling short of expectations. The unemployment rate fell to 4.1% the lowest level since December 2000. August and September were both revised upward by a combined 90,000 jobs. Wage growth cooled to a 2.4% annual rate from 2.8% in September.
The Bank of England raised their benchmark interest rate to 0.5% from 0.25% for the first increase in a decade.
The Eurozone economy grew at a 2.4% rate in the third quarter down slightly from the 2.6% pace in the second quarter. Despite the slowdown the European economy is on pace for its best year since 2007. Inflation rose 1.4% in October down from a month earlier which will likely drive caution from the ECB as it unwinds its easy money policies.
The S&P 500 is expected to post 3rd quarter earnings growth of 4.7%.
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.