| ▲ S&P 500 |
4,293.93 |
+0.62% |
| ▲ Nasdaq |
13,238.52 |
+1.02% |
| ▲ Dow |
33,833.61 |
+0.50% |
| ▼ 10-Year |
3.722% |
-0.062% |
| ▼ Oil |
70.94 |
-2.19% |
| ▲ Gold |
1,980.40 |
+1.12% |
*All data as of the previous day’s market close.
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Euro zone enters recession after Germany, Ireland growth revision (2 min read)
The eurozone has entered a recession as its GDP contracted by -0.1% in the first quarter of this year. This revised estimate is a downward adjustment from the initial 0.1% growth reported. Germany’s and Ireland’s revised contraction contributed the most to the negative performance. Household consumption dropped by 0.3% in the region, reflecting the challenges consumers face due to higher prices. Economists do not expect significant growth in the months ahead, posing a challenge for the European Central Bank to tackle inflation with further rate hikes.
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US weekly jobless claims race to 1-1/2-year high, economists urge caution (4 min read)
The number of Americans filing new claims for unemployment benefits last week has surged to the highest level in over 1.5 years. However, economists caution against overinterpreting the data as it covers the Memorial Day holiday, which can introduce volatility. While it could indicate a pickup in layoffs, the narrowness of the increase and recent rise in fraud cases suggest further confirmation is needed. Despite an increase in jobless claims, the US labor market remains relatively strong, with job growth driven by the services sector.
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Carvana stock, heavily shorted, gains 56% after outlook update (2 min read)
Shares of online car retailer Carvana surged 56% in a single day, marking its largest one-day gain ever, after the company provided an updated outlook. The company inched closer back to profitability in Q1 and now expects the remainder of 2023 to significantly improve from last year. The stock's rally has triggered a short squeeze, as heavily shorted investors are forced to cover their positions by buying the stock. Carvana had faced concerns of bankruptcy in late 2022 but has shown positive momentum this year, gaining 425% year-to-date.
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GameStop shares plunge after big executive shake-up (3 min read)
GameStop has fired CEO Matthew Furlong and appointed Ryan Cohen, the board chairman, as the executive chairman. Cohen, who took a stake in the company in 2020 as an activist investor, will now oversee capital allocation and evaluate investments. GameStop reported a drop in revenue and a narrower loss in Q1 amid its turnaround plan to transition from a brick-and-mortar retailer to an online player. The company also unexpectedly canceled its earnings call on Wednesday amid internal shakedown. Its stock dropped over 15% following the news.
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Best Balanced Funds in the ETF Space for 2023 and Beyond (6 min read)
Balanced funds have had poor performance in the last two years as the broader market sold off. However, with both stocks and bonds positive this year, balanced portfolios are looking attractive again. Balanced funds provide a mix of asset classes, typically stocks and bonds, within a single portfolio that aims to balance potential growth and income while managing risk. This article explains the pros and cons of balanced funds and highlights the current top five ranked by performance.
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Long-Term Investors Piling Into 1 Tech ETF (2 min read)
The popular Invesco QQQ Trust (QQQ), which is often considered a tech proxy, has seen outflows of $538 million this year despite surging over 33%. On the other hand, the Invesco Nasdaq 100 ETF (QQQM), pulled in $4.3 billion of new assets, more than all but a dozen other ETFs. QQQM is essentially a clone of QQQ that tracks the Nasdaq-100 but with a slightly lower expense ratio. Although QQQ has a longer history and liquidity, the cheaper price tag on QQQM is more appealing to long-term investors.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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