The pace of hiring in the US private sector slowed considerably in March, as only 145,000 new jobs were created, compared to 261,000
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2023-04-06 | Sign Up | View Online
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Market Snapshot 📷
S&P 500 4,090.38 -0.25%
Nasdaq 11,996.86 -1.07%
Dow 33,482.72 +0.24%
TSX 20,159.55 -0.57%
10-Year 3.309% -0.028%
2-Year 3.794% -0.04%

*All data as of previous day market close.

Highlights: High-growth stocks were under pressure on Wednesday as investors rapidly shifted away amid more signs that the US economy is weakening. This led the Nasdaq to take the biggest hit and fell for the third straight day. US treasury yields remained volatile as the market debates this year's rate hike trajectory.
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Markets & Economy
Private payrolls rose by 145,000 in March, well below expectations, ADP says (2 min read)

The pace of hiring in the US private sector slowed considerably in March, as only 145,000 new jobs were created, compared to 261,000 in February and below the forecast of 210,000. This is another potential sign that US economic growth is heading for a slowdown. Job creation in March was almost equally distributed between service and goods-producing sectors. Financial activities shed 51,000 jobs, while leisure and hospitality gained 98,000 workers. The ADP report is a precursor to Friday’s nonfarm payrolls report from the Labor Department.
Fed's Mester says the rate target will need to go over 5% (3 min read)

Despite the recent troubles in the banking sector, Loretta Mester, the Cleveland Fed president, expects more rate hikes by the US central bank. She believes that to bring inflation down to a stable 2%, the Fed's fund rate needs to rise above 5% and hold it there for some time. Her remarks indicate that the US rate hikes may not stop anytime soon. This was confirmed on Wednesday when New Zealand's central bank surprised the market by raising rates by 0.5% to keep up with its inflation-fighting efforts, even as the economy faces a recession.
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Business & Stocks
Toronto-Dominion Becomes Biggest Bank Short With $3.7 Billion on the Line (3 min read)

TD Bank is facing increased pressure from short sellers, who have put about $3.7 billion on the line, making it the most shorted bank in the world. The rise in the short position was fueled by TD’s exposure to the country’s housing slowdown and its significant stake in Charles Schwab, which recently lost $47 billion in market value. TD also intends to buy US regional bank First Horizon Corp in a $13.4 billion deal, which also worried some investors. Although TD is unlikely to have liquidity problems, its stock fell 11% in March, giving the short sellers an edge so far.
Johnson & Johnson shares rise after company proposes baby powder cancer settlement (2 min read)

Johnson & Johnson has proposed paying $8.9 billion to settle thousands of claims that its baby powder and other talc products caused cancer. Over 60,000 claimants have committed to support the proposed resolution, which would require approval in bankruptcy court. The proposed settlement amount also aligns with the estimate from Wall Street banks. Shares of Johnson & Johnson rose more than 4% following the announcement, and some analysts viewed it positively, although the settlement's outcome remains uncertain.
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Funds & ETFs
Electrification Metals ETFs: Tactical Bet on a Secular Transformation (5 min read)

As the global economy moves toward decarbonization, the demand for renewable energy, electrification, and battery storage is expected to require $130 trillion in new investment over the next 30 years. It would also lead to an estimated 672 million electric vehicles on the road by 2050, requiring lots of copper for electrification and lithium, nickel, cobalt, and aluminum for batteries. Electrification metals ETFs were created to tap into this growing niche; currently, only three are available in the market. This article examines these ETFs and provides a comparison. 
VYM vs VIG: Here's Which Vanguard Dividend ETF I Prefer (4 min read)

The Vanguard Dividend Appreciation ETF (VIG) and the Vanguard High Dividend Yield ETF (VYM) are popular dividend-oriented ETFs from Vanguard. Although both have the same low expense ratio of 0.06%, they differ in strategy and performance. VYM tracks the FTSE High Dividend Yield Index and invests in stocks that pay high dividends historically, while VIG follows the S&P U.S. Dividend Growers Index and targets companies that have grown their dividends for 10 years or more. This article compares the two and provides a detailed breakdown.
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Thanks,
Thomas
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