Highlights: The strong earnings from the big US banks initially boosted market sentiment, but were later overshadowed by the weak US retail sales report. The S&P 500, Nasdaq, and Dow still ended the week with gains, despite falling on Friday.

US retail sales fall 1% amid high inflation, rising rates (2 min read)
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US retail sales dropped 1% in March, marking the second consecutive monthly decline, as consumers are becoming more cautious after a burst of spending in January. Sales fell among most retailers, including auto dealers, gas stations, electronics stores, and home and garden stores. The decline in sales adds to other recent evidence that the US economy is cooling. Many economists are now forecasting a “mild recession” later this year, in large part because of the potential for a reduction in lending to weigh on growth.

Larry Fink doesn’t see a big recession this year, but expects inflation to stay higher for longer (2 min read)
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BlackRock CEO Larry Fink said he does not see a big recession in the US this year but warned that inflation would persist for some time. Fink said there is a chance of a recession in early 2024, but it all depended on how the Federal Reserve manages inflation. He noted that he expects inflation to be stickier for longer in the range of about 4%. In light of this, there’s an increasing amount of BlackRock clients considering reducing risk in their portfolios by having a better foundation of bonds and equities.

Big banks kick off earnings season with a bang (4 min read)
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Four of the US largest banks reported a surge in Q1 net income and revenue from a year ago. JPMorgan led the group with a record revenue of $38.3 billion, up 25%, and a profit of $12.6 billion, up 52%. Wells Fargo, Citigroup, and PNC also reported higher earnings as well. The results kicked off a closely-watched earnings season for the nation’s biggest banks, as many were concerned about the impact of the Fed’s rate hikes and recent bank failures. JPMorgan shares rose more than 6% after the news, while the other big banks gained between 2% to 4%.

Boeing shares tumble as some MAX deliveries halted, airlines fret over impact (3 min read)
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Boeing has halted deliveries of some 737 MAX jets due to quality-related problems with certain components made by supplier Spirit AeroSystems. The company said this will affect its production and delivery plans in the near term, as it needs to inspect the affected jets. The news caused Boeing stocks to drop more than 7% on Friday. This is the second quality issue that Boeing has faced this year, and it may upset the airlines that have been relying on the company to deliver the planes on time to expand their fleets.

This 12%-Yielding ETF Pays Large Monthly Dividends (5 min read)
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The Global X NASDAQ 100 Covered Call ETF (QYLD) has generated significant interest from investors for its double-digit yield of 12%, much more than the average yield of the S&P 500. QYLD utilizes a covered call strategy, which limits the upside potential in exchange for additional income. Although it is paying out a high monthly dividend, it has underperformed the Nasdaq and S&P 500 since its inception in 2013. More on the breakdown of this ETF and its potential price target is available in the article.

Investors trapped in Canadian ETFs after trading ban (4 min read)
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Emerge Canada ETFs face an indefinite trading ban by regulators for missing financial statement filing deadlines. Both primary and secondary market trading has been suspended for 11 ETFs due to orders imposed by the Ontario Securities Commission. Investors cannot sell their units to other investors in the secondary market, and the creation and redemption of shares in the funds have been halted. The ETFs have a combined asset of C$109 million, and Emerge Canada's CEO cannot provide assurance on when the trading ban will be lifted.

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Thomas

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