Financial News and Notes 10/2/11 – 10/8/11


-Japanese business sentiment moved into positive territory for the first time since the disasters in March.  10/3

-In August construction spending ticked up 1.4% from July.  10/4

-Auto sales jumped 10% in September.  10/4

-Manufacturing slowed around the world in September, a worrisome sign for a struggling global economy.  The U.S. manufacturing level rose slightly, but new orders were contracting casting doubt on future growth.  10/4

-Factory orders in the U.S. fell in August after rising in July.  10/5

-Fed chairman Bernanke reiterated that the U.S. economy was perilously close to recession and the government needed to do more to help as he testified before congress.  10/5

-Payroll processor ADP announced that private sector higher rose by 91,000 in September ahead of estimates.  10/6

-The rate of home ownership of homes in the U.S. fell1.1% to 65.1%, the largest drop since the Great Depression.   Meanwhile the 30 year mortgage rate hit its lowest average ever of 3.94%.  10/7

-In September employers added 103K jobs toping estimates and stemming fears of another recession. Job numbers from August were also revised higher by 57K.  The unemployment rate remained at 9.1% However, the economy remains in neutral.  10/8


-UBS announced it expected to post a quarterly profit despite the $2billion loss by a trader last month.  10/5

-Apple disappointed many with the unveiling of not the iPhone 5, but an updated version of the iPhone 4.  10/5

-Apple co-founder and tech visionary Steve Jobs passed away.  10/6

-Samsung said it expected its third quarter earnings to be weaker due to decreasing demand for flat panels and computer chips.  10/7

-Apple has said it has received more than 200K preorders for the iPhone 4s in the first 12 hours of its availability.  10/8

-Sprint announced that it would need to either tap its credit line or access the capital markets in order to raise funds.  10/8


-Obama is expected to send trade agreements with Columbia, South Korea and Panama to congress this week.  The deals could potentially be a boon to US corporations increasing exports by $13 billion. 10/3

-BNY Mellon received civil suits from New York and the Justice Department seeking $2 billion in damages regarding their foreign currency exchange transactions, alleging the firm overcharged clients for the transactions.  10/5


-Greece acknowledged over the weekend that they would be unable to hit their budget reduction targets for 2011 throwing additional bailout funds in to jeopardy.  10/3

-Global equity markets got off to a weak start in the 4th quarter.  Fears of slowing global economic growth and a Greek debt default triggering another global recession continue to dominate investors’ moves.  Many major indices are approaching bear market levels.  The Dow fell 2.4% leaving it down 16.8% for its April high.  The S&P 500 is down 19.4% since April.  Both are at their lowest levels in over a year.  In Europe stocks were down 1.1% and Japan saw stocks down 1.8%.  The 10 year treasury yield fell again to 1.787%.  10/4

-Moody’s downgraded Italy’s debt rating to A2 and said an additional drop in credit status was possible in the near term.  10/5

-Stocks finished up for the second day in a row.  The Dow rose 1.2% to 10,940, the S&P grew 1.8%, and Europe was up 3.1%.  The rise was on investor optimism for Europe debt talks, and some positive signs from the U.S. economy.  10/6

-US markets were down on Friday but ended the week up.  The Dow was up 1.7%, the S&P 500 was up 2.1%, Europe was up 2.6%.  The 10 year treasury yield rose back above 2% to 2.067%.

-Fitch lowered its ratings for Italy and Spain. 10/8

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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