Financial News and Portfolio Management Discussion through January 18th

All the news you need to stay informed about what’s currently driving the market — courtesy of Raffa Wealth Management, LLC.

US stocks hit new record highs driven by earnings news, the signing of the partial trade agreement between the US and China and positive economic news.  The S&P 500 surged 2.0%, while the Dow climbed 1.8%.  Abroad, the FTSE All-World Ex-US rose 1.0% for the week.  The 10-year Treasury yield eased over the week to end at 1.83%.

Companies are projected to report a fourth-quarter earnings decline of 2.4% from a year earlier which would make it the 4th straight quarter of earnings declines.  Large banks have reported strong fourth-quarter earnings driving optimism early in earnings season.

Germany’s growth hit a six-year low in 2019 growing at 0.6% dragged down from weakness in the manufacturing sector.

The US and China signed the phase one deal which represents a truce in the two-year trade war, with roughly $370 billion in tariffs remain on Chinese goods.

Retail spending rose 0.3% in December and excluding autos and gas rose 0.5%, the best pace in five months.

In December the construction of new homes in the US rose to their highest level since 2006.

Chinese industrial production grew 6.9% in December outpacing estimates and posting the fastest expansion in nine months.  Economic growth eased to 6.1% in China for the year, but it was in line with expectations.

 

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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