Fed Chair Powell says rates may not have to rise as much as expected to curb inflation (3 min read)

Fed Chair Jerome Powell said that stresses in the banking sector could mean interest rates won’t have to be as high to control inflation. He noted that Fed initiatives dealing with problems at mid-sized banks have mostly prevented worst-case scenarios from transpiring. However, he also mentioned that problems at Silicon Valley Bank and others could still reverberate through the economy. On balance, Powell said inflation is still too high and pledged the Fed would stay "steadfast" in its goal to reduce prices.

Bank of Canada is more worried about Canadians keeping up with their debt (4 min read)
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After US consumer debt reached a record high, the Bank of Canada warned about the effect of higher interest rates on the country’s household debt in its latest Financial System Review. It notes that more Canadian households are now expected to face financial pressure as they renew their mortgages in the coming year. The report also acknowledges the potential credit risks associated with banks' exposure to commercial real estate and emphasizes the need for vigilance in the face of rising rates.

OpenAI Brings ChatGPT App to Your Smartphone (2 min read)

OpenAI released an iPhone version of ChatGPT on Thursday and an Android version is in the pipeline. The app is available for iOS users in the US and OpenAI plans on expanding it to more countries in the coming weeks. Ironically, Apple is restricting internal use of ChatGPT and other AI tools just as the new app comes out due to concerns that the software could be used to release confidential data. It recently joined Samsung and other corporate giants in banning employee use of the tools.

Foot Locker’s 27% plunge, guidance cut may signal trouble ahead for other retailers (5 min read)
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Foot Locker's stock tumbled nearly 27% after reporting a double-digit sales drop and slashing its outlook due to a worse-than-expected consumer slowdown. The company now expects sales to be down 6.5% to 8% for the year and projects lower earnings per share. It cited increased promotional activity, macroeconomic factors, and constrained supply of Nike products as contributing factors to its performance. The poor report could indicate potential trouble for similar retailers as they report earnings in the coming weeks.

If You Love JEPI, You Need To Check Out JEPQ (5 min read)

The JPMorgan Equity Premium Income ETF (JEPI) is one of the most popular actively managed low-volatility dividend ETFs in the US market. Year to date, JEPI has attracted more than $8.4 billion in net inflow. For investors who like JEPI, then its sibling fund, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is worth taking a closer look at. It follows the same strategy but with exposure to the Nasdaq 100  instead of the S&P 500. Both funds offer very high dividend yields and can complement different investment objectives.

Here’s where BlackRock sees a top thematic ETF investing opportunity as tech soars (3 min read)
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Technology-related stocks have seen significant growth in 2023 with the Nasdaq 100 hitting its 13-month highs last week. BlackRock believes the electric vehicle (EV) industry is a promising investment theme amid the tech rally. While EVs account for just 7% of total US car sales, the industry's rapid growth suggests an inflection point for future market adoption. BlackRock highlighted its iShares Self-Driving EV & Tech ETF (IDRV) for those interested in EV and tech exposure together. So far this year IDRV is outperforming SPY with gains of about 10.3%.

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Thomas

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