Netflix's stock fell nearly 9% after a positive earnings report left investors uncertain about future revenue. The company's 62% year-to-date
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2023-07-21 | Sign Up | View Online | Advertise
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Market Snapshot 📷
S&P 500 4,534.87 -0.68%
Nasdaq 14,063.31 -2.05%
Dow 35,225.18 +0.47%
10-Year 3.854% +0.112%
Oil 75.63 +0.37%
Gold 1,971.40 -0.47%

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

Markets & Economy
US jobless claims fall again as labor market continues to flash strength (2 min read)

The number of Americans applying for unemployment benefits decreased last week, showing a healthy labor market despite higher interest rates aimed at slowing down hiring. Jobless claims fell by 9,000 to 228,000 for the week ending July 15. The labor market has continued to be resilient since the pandemic's impact in 2020, with employers adding jobs at a rapid pace. The unemployment rate remains historically low at 3.6%.
Dollar gains as drop in US jobless claims boosts rate-hike bets (2 min read)

The dollar strengthened against other currencies after a surprise drop in US jobless claims, raising expectations that the Fed might continue raising interest rates. The big decrease in jobless claims may indicate a strong US labor market, which could led to the Fed raising rates beyond the expected increase. Many investors are now waiting for Fed Chair Jerome Powell's comments after the rate decision next Wednesday to gain insight into future rate hikes.
Good News-Bad News About the US Economy (4 min read)

The current US economic situation has both good and bad aspects. On the positive side, inflation is falling, and the stock market has recovered from its previous losses. The labor market is also doing well, with low unemployment rates. However, inflation has been higher than wage growth for some time, affecting workers' real earnings. There are also concerns that higher interest rates may impact the economy. While the economy is currently stable, there are still risks on the horizon, which is the reason some market participants have remained cautious.
Business & Stocks
Netflix stock sinks as Wall Street looks for clarity on revenue growth (3 min read)

Netflix's stock fell nearly 9% after a positive earnings report left investors uncertain about future revenue. The company's 62% year-to-date rally was driven by cheaper plans and stopping password sharing, but the latest report lacked details on these initiatives. Netflix's Q2 revenue was lower than expected, and its average revenue per membership was weak. The company expects revenue growth from new memberships, but uncertainty remains about the impact of ad-supported plans and how long it will take for revenue to grow.
Apple tests generative AI tools to rival OpenAI's ChatGPT (2 min read)

Apple is reportedly working on its own AI offerings similar to OpenAI's ChatGPT and Google's Bard. The company has developed its own framework called "Ajax" to create large language models and is testing a chatbot referred to as "Apple GPT." While Apple has been subtle in its AI advancements, this new virtual assistant can summarize text and answer questions based on its training data. The news boosted Apple's shares to a record high on Wednesday but pulled back slightly into the close on Thursday.
TSMC flags 10% fall in 2023 sales as weak global outlook weighs (3 min read)

Taiwanese chipmaker TSMC reported the first profit drop in nearly 4 years in Q2 and expects a 10% fall in sales for 2023 due to global economic challenges affecting chip demand. The high demand for AI chips hasn't fully offset weaker market conditions caused by a slower than expected economic recovery. TSMC predicts a slower increase in investment spending over the next few years. Their Arizona plant's production, which is highly anticipated by US tech giants, is now pushed to 2025 due to a shortage of skilled workers.
Funds & ETFs
Fastest Growing ETFs of the Year (5 min read)

This report showcases the fastest-growing ETFs of 2023 based on their percentage increase in AUM. It provided a separate list of small and large initial assets. Notable ETFs include the Schwab 5-10 Year Corporate Bond ETF (SCHI) and the First Trust Nasdaq Semiconductor ETF (FTXL), both experiencing significant growth from little assets. Additionally, the list includes ETFs like the Direxion Daily TSLA Bull 1.5X Shares (TSLL) and the BondBloxx Six Month Target Duration US Treasury ETF (XHLF), which have started with $100 million or more in AUM.
The Case for Investing in CLOs With ETFs (10 min video)

Collateralized debt obligations (CLO) earned a bad reputation due to their role in the global financial crisis. However, Fran Rodilosso, the head of fixed income ETF portfolio at VanEck, argues that investors should still consider an allocation in CLOs as they offer high yields and protection against the downside. This short video is with Fran where he discusses more on this asset class and his firm’s new CLO ETF.
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