Ford drops the price of its Tesla competitor (3 min read)
Ford is boosting production of the Mustang Mach-E electric SUV and dropping its price by $5,900 after Tesla recently dropped prices of its vehicles. The Mustang Mach-E is priced and aimed to compete directly with Tesla’s Model Y. The price cut is a substantial roll-back from Ford’s decision to hike prices on this model last summer. Even with the lower prices, some versions may still cost more than before the increases. Shares of Ford fell nearly 2.9% after announcing the price cut.
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Why Carvana Stock Was Skyrocketing (2 min read)
Shares of Carvana extended the gains on Friday and closed 28.7% higher on Monday. The stock is being lifted by an ongoing short squeeze from retail investors. Carvana is still under pressure from falling used car prices and debt burdens. Fundamentals haven't changed at all, but yet its stock has surged two days in a row with huge jumps in trading volume. Another struggling stock, Bed Bath & Beyond, also rose by double digits on Monday for the same reasons.
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Morgan Stanley Says Don’t Buy the Rally as Fed Looms (2 min read)
Investors piling into the recent market rally are forgetting the cardinal rule of investing — "Don’t Fight the Fed." That's according to Morgan Stanley strategists, who say the latest move in stocks is more driven by seasonal factors than any compelling narrative, and is in direct defiance of the Federal Reserve. They warned that the stage is setting investors up for disappointment and it should lead to the final leg of this bear market.
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US stocks closed lower as the Fed about to enter two-day meeting (2 min read)
US stocks closed lower on Monday, putting a pause on the January rally as investors braced for the busiest week of earnings and awaited the Fed’s decision on Wednesday. About 20% of the companies in the S&P 500 will be reporting earnings this week. Even with the markets lower, the S&P 500 gained 8% this month and is heading for its best January since 2019. Investors have pushed stocks higher this year due to softer inflation reports and the optimism of a rate hike pause. The rally will likely fade if the Fed decides to lift rates higher for a longer time.
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International ETFs Take Flight as Domestic Inflows Drop (2 min read)
US-listed ETFs brought in a net of $8.2 billion last week, and the majority of it was from international assets. International equity ETFs and international fixed income ETFs attracted $7.6 billion and $1.5 billion, respectively. US equity ETFs continued to lose assets with an outflow of nearly $2 billion. US fixed income ETFs also posted a loss of $468 million, the first weekly outflow for this asset class since September last year. The full list of last week’s top inflows and outflows are available in the article.
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Digital Assets Take in $117M Last Week (2 min read)
Digital asset products saw an inflow of $117 million last week, the largest in a single week since July 2022. The total AUM of this asset class has jumped 43% higher from its lows in November. YTD trading volume also improved by 17%. Most of the focus was on Bitcoin-related products, where it accounted for more than 99% of the inflows. This article provides the latest weekly breakdown of digital asset flows by assets, products, providers, and countries.
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Thanks,
Thomas
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