Highlights: Despite stocks closing higher on Thursday before the long weekend, they still posted losses for the week, with the S&P 500, Nasdaq, and Dow dropping 0.1%, 1.1%, and 0.6%, respectively. The market remained volatile as more signs of a slowdown in the US economy emerged. While this could stop the Fed from raising the rate further, some are concerned that rate hikes have already gone too far and could trigger a recession.

A labor market cooldown: US economy added just 236,000 jobs in March (6 min read)
​
US employers added just 236,000 jobs in March, while the unemployment rate dropped to 3.5%. Economists expected a net gain of 239,000 jobs and a jobless rate of 3.6%. The new data reinforces other economic signs that the US labor market is cooling off due to the Fed’s rate-hiking campaign. It was also the first job report in 12 months that came below expectations. However, many experts believe that the US job market continues to show resilience as it is still above the levels before the pandemic.

Bank of Canada seen on hold even as economy accelerates (4 min read)
​
Despite recent economic strength, the Bank of Canada will likely leave interest rates unchanged at its meeting on 13 April. GDP rose by 0.3% month-over-month in February, and employment data for March showed a seventh consecutive job gain. While the central bank is concerned about the rebound in economic activity, it expects a deceleration over the remainder of 2023. Many economists agreed that the Bank of Canada would hold its key rate steady, although money markets are betting its next move will be a cut.

Tesla cuts US prices for fifth time since January (2 min read)
​
Tesla has reduced prices for its electric vehicles in the US for the fifth time since the beginning of the year, by between 2% and nearly 6%, according to its website. The move comes as the US prepares to introduce stricter standards that are expected to limit EV tax credits. Despite the multiple price cuts to spur up demand, Tesla’s Q1 delivery was up just 4% from the previous quarter. Some analysts and investors have also flagged concern that Tesla’s industry-leading profit margins could be at risk.

Bed Bath & Beyond proposes reverse stock split as it struggles to avoid bankruptcy (3 min read)
​
Bed Bath & Beyond is facing bankruptcy and needs its shareholders to approve a reverse stock split at a special meeting on May 9. The company's stock has been trading below $1 for a long time and risks being delisted from the exchange. The reverse stock split would reduce the number of shares and increase the price per share, allowing the company to proceed with the $300 million stock offering announced last week. Bed Bath's stock was around 30 cents on Thursday, with a market value of about $132 million.

Innovator Debuts New Kind of Buffer ETFs (4 min read)

Innovator ETFs has introduced four new funds with defined outcomes that offer high-income levels through option premiums. These funds have pre-expenses distribution rates ranging from 6.3% to 10.11% and an expense ratio of 0.79%. Like its previous buffer funds, each new fund will follow the price return of the S&P 500 index with a downside “barrier.” The additional feature is that they will also generate income from US treasuries and have no caps on the upside. More information on Innovator’s new funds can be found in the article.

What Is a Thematic ETF? (6 min read)
​
Thematic ETFs are exchange-traded funds that focus on a specific theme or industry rather than a broad market index. They offer investors exposure to growing enterprises, diversification, and accessibility. There are various types of thematic ETFs, such as industry-specific sector, mega-trend, ESG, smart beta, or factor-based. This article highlighted some of the benefits and risks of thematic ETFs and how to choose the right one that fits your investing goal.

That's it for today! You can reply to this email if you have any comments or feedback.

Thanks,
Thomas

No longer want to receive these emails? Click here to unsubscribe.