Financial News 8/5/12 – 8/11/12

Economy

-Italy’s GDP contracted 0.7% in the second quarter. 8/8

-Home prices jumped in the second quarter by the most in 7 years.  Prices rose 6% from the first quarter and 2.5% in June.  Freddie Mac, who track prices differently echoed the sentiment, and posted a $3 billion profit.  8/8

-China’s inflation rate eased to 1.8% in July allowing for the potential to continue monetary easing in the country.  8/9

-Initial jobless claims dropped 6,000 last week to 361,000 a level showing more stabilization than the 380K to 390K seen in April and May. 8/10

-U.S. exports countered the global trend and rose in June and the overall trade gap fell from $48 billion in May to $42.9 billion in June. 8/10

Corporate

-Best Buy’s founder Richard Schulze put in an offer to the company to take it private for about $10 billion.  8/7

-Disney’s fiscal third quarter profits jumped 24% driven by its parks and cable channels.  8/8

-Of the 425 companies in the S&P 500 that have reported earnings for the second quarter, 64% have beaten estimates. 8/8

-News Corp. showed a loss of $1.6 billion in its most recent quarter as a result of a large charge it took for its publishing business.  8/9

-J.C. Penney sank to a large loss over its most recent quarter as sales fell 23%. 8/11

Market

-Stocks rose again on Tuesday on hopes of additional stimulus measures by the Fed. The S&P 500 topped the 1,400 mark for the first time in three months rising 0.5%, the Dow gained 0.4% and Europe was up 0.7%.  8/8

-U.S. Stock markets rose to end the week.  The S&P 500 posted its 6 straight daily gain for its longest winning streak since December of 2010 and notched its 5th straight weekly increase.  The index rose 1.1% for the week and the Dow rose 0.9%.  Internationally Japan gained up 3.9% and Europe was up 1.6% on intervention hopes.  8/11

There is no guarantee that any investment strategy, including those described here, will be successful. Any investment or investment strategy can lose money. Past performance does not guarantee or predict future results. You should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Raffa Wealth Management, LLC. This information was gathered from reliable sources but we cannot guarantee accuracy. Indexes do not reflect the fees associated with actual investments and such fees would reduce the performance illustrated.
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