Morgan Stanley's Mike Wilson, known for his bearish view, suggest that stocks are experiencing a 2019-like rally due to expectations of
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2023-08-01 | Sign Up | View Online | Advertise
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Market Snapshot 📷
S&P 500 4,588.96 +0.15%
Nasdaq 14,346.02 +0.21%
Dow 35,559.53 +0.28%
10-Year 3.961% -0.008%
Oil 81.86 +1.59%
Gold 2,003.80 +0.20%

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

Markets & Economy
China tries to boost consumer spending as factory sector contracts for fourth month (3 min read)

China introduced measures to boost domestic consumption in response to recent streak of weak economic data. The country’s manufacturing activity contracted for the fourth consecutive month in July, while services and construction activities fell to the lowest since late 2022. China’s GDP also only grew by 0.8% in Q2 amid consumer spending weakening. The new measures aim to stimulate recovery, with specific efforts in industries like automobile, real estate, electronics, and services. However, the economic outlook remains challenging.
Reuters poll: Oil to drift lower as slower growth offsets OPEC+ cuts (2 min read)

A Reuters poll of economists and analysts predict oil prices to stall in 2023 due to weak economic growth, which will curb demand and offset the impact of OPEC+ production cuts. The slowdown in China’s economic growth is a large contribution to the slowing oil prices amid other concerns like high inflation and interest rate worldwide. However, some still believe Chinese stimulus measures and increased air travel may support prices later in the year.
The case for a soft landing is slowly but surely building (3 min read)

The possibility of a soft landing for the US economy is improving after months of uncertainty. The Fed is no longer forecasting a recession despite a slowdown in growth. Recent economic data indicates a cooling, but the economy remained strong, with US GDP growing faster than estimated in Q2. Several inflation metrics also show price easing more than expected while the labor market stays resilient. Though signs of improvements are emerging, the upcoming economic data and job reports will shed further light on the economy's health.
Business & Stocks
Stocks are in the middle of a 'pivot rally' that still has room to run (2 min read)

Morgan Stanley's Mike Wilson, known for his bearish view, suggest that stocks are experiencing a 2019-like rally due to expectations of easier Fed policy. Similar to 2019’s strong performance, the S&P 500 is up 20% this year driven mostly by optimism about lower inflation. Mike believes the rally will likely continue but warned it may not be for a prolonged period. Other experts like Wharton's Jeremy Siegel also predicts new all-time highs for stocks due to a resilient economy and promising earnings.
SoFi surges most in a year after boosting 2023 revenue forecast (1 min read)

SoFi Technologies' shares jumped nearly 20% on Monday after more than doubled this year. The rally was driven by the company raising its revenue guidance due to deposit growth and lower funding costs on loans. SoFi's bank charter has helped it avoid cost challenges faced by other financial-tech companies due to rising interest rates. The company’s total deposits reached $12.7 billion at the end of Q2, compared to $7.34 billion at the end of last year.
Yellow Jumps 111% Ahead of Bankruptcy Filing (2 min read)

Yellow, a nearly century-old US transportation company, saw its stock surging over 110% despite imminent bankruptcy filings. Reports of the company's bankruptcy plans emerged last week, and over the weekend, Yellow laid off hundreds of employees and stopped operations. This signals a high likelihood of bankruptcy filing this week. The heavy trading and price surge might be traders trying to profit from the stock’s short-term movements before potential delisting.
Funds & ETFs
10 Top Performing Emerging Markets ETFs (4 min read)

Investing in emerging markets ETFs can diversify portfolios and tap into economies like China and India with high growth potential. This asset class has been receiving more attention recently due to its lag over the last decade. So far this year, the top ETF performers in this category are the ones that focus on dividend-paying stocks. This article discusses the pros and cons of emerging markets ETFs and ranks the best based on performance over the last year.
Active ETF Growth Tops Passive, Still Gaining Steam (2 min read)

Active ETFs are surging in popularity among retail investors worldwide, growing at a much faster pace than passive ETFs. In the first half of the year, active ETFs expanded by 14%, while passive ones only grew by 3%. The US remains the central hub for active ETFs, holding 78% of assets, but Asia saw the fastest growth rate at 78%. Although active ETFs have higher fees, many investors still believe skilled managers can outperform the market.
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