Famous investor Michael Burry, who was known for correctly predicting the US housing market crash in 2008 and the movie “Big Short”
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2023-05-17 | Sign Up | View Online
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Market Snapshot 📷
S&P 500 4,109.9 -0.64%
Nasdaq 12,343.05 -0.18%
Dow 33,012.14 -1.01%
10-Year 3.541% +0.032%
Oil 70.66 -0.28%
Gold 1,993.70 -1.34%

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

Markets & Economy
Canada's inflation unexpectedly rises in April, upping rate-hike pressure (3 min read)

Canada's annual inflation rate increased to 4.4% in April, the first rise in 10 months, putting pressure on the central bank to resume interest rate hikes. Analysts had expected a decrease to 4.1%. On a month-to-month basis, it rose 0.7%, surpassing the forecasted 0.4% increase. The Bank of Canada was the first major central bank to have paused rate hikes this year as it evaluates their effectiveness in curbing inflation. However, given the data today, analysts believe there is a chance of a rate increase at the next policy meeting in June.
US retail sales rose less than expected in April (2 min read)

US retail sales in April increased by 0.4% from the previous month, less than the expected growth rate of 0.8%. Some categories, such as sporting goods and hobbies, saw significant declines, while growth in miscellaneous store and nonstore retailers, including online sales, helped boost total sales. Despite falling short of expectation, the underlying trend for retail sales is still solid and likely to stay strong in Q2. But throughout the year, many economists anticipate it to moderate due to factors like higher interest rates and tighter credit standards.
Business & Stocks
Michael Burry Bet on China Tech and US Regional Banks in Q1 (3 min read)

Famous investor Michael Burry, who is known for correctly predicting the US housing market crash in 2008 and the movie “Big Short”, was bullish on Chinese tech in the first quarter according to a recent filing. It showed that he boosted his investments in Alibaba and JD.com to become his largest holdings, accounting for 20% of the portfolio. What’s surprising was that he also loaded up on regional bank stocks in Q1, including PacWest, Western Alliance, New York Community, and even First Republic which recently collapsed.
Home Depot posts worst revenue miss in about 20 years (3 min read)

Home Depot reported its biggest revenue miss in over 20 years due to consumers delaying large projects and reducing purchases of high-ticket items. Factors such as cold weather, falling lumber prices, rising mortgage rates, and a shift towards spending on services contributed to the decline in sales. Home Depot lowered its forecast and now expects a sales decline of 2-5% for the year, compared to its previous prediction of flat sales. However, the company remains optimistic about the long-term fundamentals of the home improvement industry.
Funds & ETFs
Cathie Wood Buys Millions of Shares of Struggling Stocks (2 min read)

Cathie Wood’s Ark Invest latest bet revolves in the biotechnology industry. A few of their funds, including the Ark Innovation ETF (ARKK), recently added shares of biotech companies such as Ginkgo Bioworks, Invitae, Adaptive Biotechnologies, and CareDX. Many of these companies reported Q1 better than expectation, but its stock price still dropped due to declining revenues. The new investment reflects Ark Invest’s continued interest in cutting-edge industries despite the challenging market environment.
FANG ETF (FNGS) Hits New 52-Week High (2 min read)

The MicroSectors FANG+ ETN (FNGS) has reached a 52-week high and gained about 55% from its low. FNGS tracks the performance of the NYSE FANG+ Index, which equally weights 10 highly traded growth stocks of next-generation technology and tech-enabled companies. The tech sector has been performing well due to factors such as easing inflation, positive corporate earnings, the adoption of new technologies, and a likely pause in rate hikes. This article argues that FNGS’s outlook looks favorable amid the potential for continued growth in the tech sector.
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