The US job market continues its cooldown (2 min read)

The latest US job report shows more signs of the labor market cooling as only 187,000 jobs were added last month, weaker than the 200,000 job gains estimated by economists. June’s job growth was also revised lower. However, the unemployment rate in July dropped to 3.5% from 3.6% while the average hourly wage ticked slightly higher. Despite the decline in job growth, the data still points to a strong US labor market and aligns with the possibility that the Fed can curtail inflation without causing severe unemployment.

JPMorgan Discard Recession Forecast, Join Wave Of Wall Street Optimism (2 min read)

JPMorgan economists have changed their forecast, abandoning their earlier prediction of an imminent US recession. Instead, they anticipate sustained economic growth this year and modest growth in 2024. Factors like AI-driven productivity gains and an increase in labor supply contribute to their positive outlook. While July’s jobs report suggests a slowdown in the labor market, it's not expected to lead to a significant rise in unemployment. However, the bank believes there is still the risk of a downturn if the Fed continues to raise interest rates.

Apple Stock Slides Below Historic $3 Trillion Mark (2 min read)

Apple's market value, which briefly hit $3 trillion last month, has fallen below that mark due to concerns about weak demand for its products. Its stock fell about 5% on Friday, resulting in a market cap of $2.9 trillion. The company reported the third consecutive quarter of declining sales and expects a similar trend to continue in the current quarter. While some analysts are hopeful about Apple's future, concerns exist due to the company's high valuation and uncertainty about new product success.

Carl Icahn's firm cuts dividend by 50% after short-seller attack (2 min read)

Icahn Enterprises, an investment firm owned by Carl Icahn, has cut its quarterly payout by half after allegations of operating a "Ponzi-like" structure. The allegation was reported by short-seller Hindenburg Research in May. The company's shares dropped by 34% after the dividend cut, adding to a 35% decline since the short-seller report first emerged. Icahn Enterprises denied the allegations and expressed its commitment to distributing dividends while Hindenburg remains short on the company.

Regional Bank ETFs Rallying (3 min read)

US regional bank stocks have rebounded significantly following the Silicon Valley Bank collapse, marking their strongest monthly performance in years. The KBW Nasdaq Regional Banking index surged 18% in July, its best month since November 2016, leading most ETFs in this sector to rally in a similar range. The rally was driven by the bank’s recent robust earnings reports that benefitted from higher interest rates and growing signs of a resilient economy.

Beating the benchmark? How AI-driven ETFs stack up (2 min read)

ETFs using AI algorithms for stock selection are gaining popularity, but their information advantage is still uncertain. While evidence of AI's advantage is yet to be proven, some AI-based ETFs like the QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (AMOM) have significantly outperformed its non-AI equivalent, the iShares momentum ETF (MTUM). However, the debate continues on whether AI can consistently beat the broader market like the S&P 500.

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