JPMorgan has agreed to purchase First Republic Bank in a government-brokered deal after attempts at private rescue have failed.
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2023-05-02 | Sign Up | View Online
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Market Snapshot 📷
S&P 500 4,167.87 -0.04%
Nasdaq 12,212.60 -0.11%
Dow 34,051.70 -0.14%
10-Year 3.568% +0.116%
Oil 75.68 -1.43%
Gold 1,990.10 -0.45%

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

Markets & Economy
China factory activity unexpectedly cools in April (3 min read)

China’s manufacturing activity shrank in April for the first time since December, raising concerns about the country’s economic recovery from the pandemic. The contraction was driven by weak global demand, slowing prices, and high bank savings, which reduced the demand for factory output. The government and the central bank have taken steps to boost economic growth, such as cutting interest rates, offering subsidies, and facilitating visas for overseas businesspeople.
Oil drops as economic growth concerns offset OPEC+ cuts (2 min read)

Despite the OPEC+ supply cut taking effect in May, oil prices started the month 2% lower. The falling price was mostly driven by concerns over the economic impact of the Fed’s potential rate hike this month and weaker Chinese manufacturing data. The Fed is expected to raise the rate by another 0.25% this week but many debate whether it will be the last one given the recent US economic data and bank failures. China being the world’s largest crude importer was also in focus as its slowing manufacturing activity raised concerns over the country’s recovery.
Business & Stocks
JPMorgan Ends First Republic’s Turmoil After FDIC Seizure (5 min read)

JPMorgan has agreed to purchase First Republic Bank in a government-brokered deal after attempts at private rescue have failed. First Republic was the second-largest bank failure in US history and the fourth lender to collapse since March this year. JPMorgan will take over First Republic’s assets and share the losses and recoveries on loans with the FDIC. The transaction will add to JPMorgan’s size, making the biggest US bank even larger. However, bank lending will likely suffer for a time in the wake of recent bank failures according to CEO Jamie Dimon.
Lordstown Motors warns of bankruptcy after Foxconn threatens to walk away from a funding deal (2 min read)

Lordstown Motors, an electric vehicle startup, has warned that it may go bankrupt if a funding deal with Foxconn, a Taiwanese contract-manufacturing giant, falls through. Lordstown has received a letter from Foxconn alleging that it was in breach of an investment deal because its stock fell below $1, trigging a delisting notice. Foxconn agreed to invest up to $170 million for a 19.3% stake in Lordstown, with the first $52.7 million already paid. The remainder and the deal itself are now in jeopardy. Shares of Lordstown fell more than 23% on the news.
Funds & ETFs
7 of the weirdest, wildest, oddball ETFs (6 min read)

While most ETFs typically offer exposure to a broader market or specific industry, some are focused on a very niche and offbeat investment theme. Here are seven of the weirdest ETFs on the market, which include funds that follow Jim Cramer’s stock picks, track the volatility of the S&P 500 index, invest in the commercialization of space, and focus on "meme stocks." Each fund has its own benefits and drawbacks and this article discusses why investors may or may not want to invest in them.
Hedge Funds Bet Dollar to Erase Hike-Cycle Gains as Fed Peaks (1 min read)

Investors have increased their bets against the US dollar as the expected Fed rate hike this week is widely anticipated to be the end of the tightening cycle. Hedge funds, which were bullish on the dollar just a few weeks ago, have reversed their bets and boosted their net bearish position to the highest since June 2021. According to Bloomberg’s gauge of the dollar against major trading partners, the currency is set to erase most of the gains posted since the Fed started hiking rates last March.
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