All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.
US stocks ended a volatile week down over geopolitical concerns, uncertainty over the Fed’s next move, and economic concerns in Europe and China. The S&P 500 sank 1.4% while the Dow dropped 1.0% for the week. Internationally, Europe fell 1.8%, while Japan was down 0.6% for the week. The 10 Year Treasury yield finished the week at 2.54% down from the previous week as bonds rose with safe haven investments more in favor. Article
Bond king Bill Gross announced he was stepping down from Pimco, the firm he founded and the flagship fund he managed, the Pimco Total Return fund, the largest bond fund in the world. He will move to Janus Capital to manage a new unconstrained bond fund there. Article
The US Treasury took action to try and stem the tide of recent inversion deals, where a US company buys/mergers with an international company and moves its corporate home there to take advantage of a lower tax rate, by adding rules which take away many of the incentives. Article
Chinese Finance Minster Lou Jiwei stated that the country did not expect to undertake any new stimulus measures despite relatively weak growth.
A European purchasing manager’s index dropped to its lowest level of the year spurring additional growth worries.
New home sales jumped 18% in August to the highest level since May 2008.
Revised 2Q GDP showed growth accelerated faster than previous estimates at 4.6%. The gain matches the fastest pace of growth since the recession.
Blackberry and Nike both posted earnings reports.
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