US inflation continued to show signs of cooling in June, with the core personal consumption expenditures (PCE) price index, a key
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2023-07-31 | Sign Up | View Online | Advertise
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Market Snapshot 📷
S&P 500 4,582.23 +0.99%
Nasdaq 14,316.66 +1.90%
Dow 35,459.29 +0.50%
10-Year 3.957% -0.055%
Oil 80.58 +0.99%
Gold 1,960.40 +0.85%

*All data as of the previous day’s market close.

Markets & Economy
The Fed’s favorite inflation measure cooled down even further in June (2 min read)

US inflation continued to show signs of cooling in June, with the core personal consumption expenditures (PCE) price index, a key gauge followed by the Fed, rising only 0.2% on a monthly basis and 3% from last year. The core PCE inflation, which excludes food and energy, also increased by 0.2% on the month and 4.1% year-over-year. These figures are all slightly better than economist estimates and the lowest since September 2021. Markets reacted positively on Friday as the data further suggest inflation easing.
The Bank of Japan just shocked markets with a policy tweak (5 min read)

The Bank of Japan surprised global financial markets by loosening its yield curve control (YCC), a policy targeting a 0% yield on 10-year government bonds, to allow more fluctuation within a range of 0.5%. This sent the Japanese bond yield to the highest level since 2014, triggering big swings in the yen. US bond markets slipped on speculation that higher yields in Japan may lead to cash outflow as Japanese investors are the biggest foreign holders of US government debt. The move also raised the potential of Japan deviating from its negative-rate policy in the future.
Portfolio manager says OPEC+ alliance could break (4 min read)

The managing partner of Clean Energy Transition, Per Lekander, predicts that the group of 23 oil-producing nations called OPEC+ might break up due to declining oil demand and lack of cooperation. He argues that the group faces the challenge of constantly cutting production in a shrinking market and the leader of OPEC+, Saudi Arabia, has acted on its own and ignored the US pressure to pump more oil. If OPEC+ does collapse, he believes oil prices could drop to $35 per barrel.
Business & Stocks
China Asks Tech Giants for Case Studies in Sign of Easing (4 min read)

China's largest technology companies have been asked by authorities to provide case studies of their successful startup investments in consumer, telecom, and media companies. This move suggests that authorities are considering granting broader leeway to tech firms for backing such deals after a crackdown that halted such investments and affected China’s tech giants two years ago. Companies like Tencent and Meituan that received the request saw their shares jump about 2%, while the Hang Seng Tech Index reversed declines and rose 1.8% after the news.
Intel Gains After PC Recovery Delivers a Surprise Profit (5 min read)

Intel reported a surprising profit in Q2 after losses in previous quarters and gave a bullish sales forecast, causing its stock to rise 5.6%. The company said the second half of the year will show its long-awaited comeback, and its PC chip business has seen a return to normal demand levels. Intel expects earnings and revenue in Q3 to be higher than analysts predicted. The company still remains in the early stage of turnaround but is on course for plans to adopt new manufacturing advances to regain its technological leadership by 2025.
Ford pushes back EV target, warns of wider losses due to slower-than-expected adoption (2 min read)

Ford Motor has delayed its electric vehicle (EV) production targets due to slower-than-expected adoption. The company now expects to reach a rate of 600,000 EVs per year in 2024, pushing back from its earlier estimate of achieving that level by the end of 2023. Ford had previously aimed for more than 2 million EVs per year by the end of 2026 but now doesn't have a specific timeframe for reaching that volume. Despite the delays, Ford remains committed to its EV spending plan and targets an 8% operating margin for its EV business.
Funds & ETFs
How To Build An ETF Portfolio For Income (8 min read)

This article is a detailed guide for beginner investors who are looking to build an income portfolio through ETFs. It explains the basics of ETFs, how they work, and how to evaluate and choose them for income. It also lists eight high-dividend ETFs that provide diversified exposure to different sectors and regions, and how to buy them through various platforms.
Move Over, JEPI. JEPQ Is Catching Fire (4 min read)

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has seen exceptional demand from investors, with over $10 billion of inflows this year. Similar to its popular sibling fund, the JPMorgan Equity Premium Income ETF (JEPI), JEPQ invests in equity-linked notes but focuses on Nasdaq-100 stocks, making it more tech-heavy and leading to higher returns this year as tech stocks soared. However, JEPQ's performance lagged behind its benchmark QQQ due to its covered call strategy, which underperforms during rising markets.
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