Bed Bath & Beyond shares plummet after company warns of potential bankruptcy (4 min read)

Bed Bath & Beyond said in the coming months it will likely not have the cash to cover expenses and is exploring financial options which includes a potential bankruptcy. The company has been burning through cash quickly in recent quarters while sales continue to decline. It also has a history of strained relationships with key national brands, making it even harder to get enough merchandise to fill its shelves. Shares of the company plunged nearly 30% after the news, hitting a record low.

Amazon will lay off more than 18,000 workers (2 min read)
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Shortly after Salesforce announced layoff this week, Amazon also said it will be cutting more than 18,000 workers. Amazon significantly ramped up hiring during the pandemic like many tech firms and is now experiencing whiplash and layoffs as people return to pre-pandemic habits and macroeconomic conditions deteriorate. The latest cut is higher than the 10,000 previously planned as Amazon anticipates the global economic outlook continues to worsen.

Oil prices rise after U.S. fuel stocks drawdown (2 min read)

Oil prices were up about 1% on Thursday after the biggest two consecutive day loss in the start of a year. It dropped more than 9% on Tuesday and Wednesday due to worries about global recession as the world’s two largest oil importers, the US and China, looked weak. Oil prices going higher on Thursday was driven by US data showing lower fuel inventories. Experts said the rebound is just a short-term support and the prevailing trend is still down.

Private payroll growth surged above estimate in December (2 min read)

ADP report shows that US companies added more jobs than expected in December. Private payroll rose by 235,000 for the month, much higher than the 153,000 estimate and the 127,000 in November. The annual pay across all industries rose 7.3% from a year ago. Stock markets edged lower following the report as investors fear the stronger job numbers could push the Fed to raise interest rates even higher.

Gabelli Launches Aerospace and Defense ETF (2 min read)
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Gabelli Funds launched its fifth ETF that focuses on aerospace and defense. The Gabelli Commercial Aerospace & Defense ETF (GCAD) will invest 80% of its assets in income producing equities in the aerospace and defense sector. This specific sector has been performing well, the equivalent from iShares and SPDR were up more than 20% in the last 3 months. GCAD also has a “loyalty program” where the investments in the first $25 million AUM will not be charged fees or expenses.

3 ETF Trends to Watch This Year (3 min read)
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The head of ETFs at Natixis shares his thoughts on equity, fixed income, and outcome-oriented ETFs as investors will likely put new money to work this year after the crash in 2022. He expects more launches and assets in outcome-oriented ETFs because investors are still willing to give up some upside performance for downside protection given the current market uncertainty. Conservative investors will add to fixed income ETFs as the yield is at the highest in years. Investors with bigger risk appetite might return to equity ETFs in hopes of a rebound.

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Thanks,
Thomas

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