Microsoft and Alphabet reported a better than expected Q1 despite the market’s fear of gloomy big tech earnings this week.
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2023-04-26 | Sign Up | View Online
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Market Snapshot 📷
S&P 500 4,.017.63 -1.58%
Nasdaq 11,799.16 -1.98%
Dow 33,530.83 -1.02%
10-Year 3.40% -0.115%
Oil 77.12 -2.08%
Gold 2,007.10 +0.37%

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

Markets & Economy
Debt crisis is a scary white swan for US economy (6 min read)

The approaching debt crisis in the US is like a “white swan” event, where its entirely predictable with the potential to be catastrophic. If Congress can’t agree to lift the debt limit by June or July, the government would be forced to dramatically cut spending to erase its budget deficit. According to Moody's, those cuts could shrink the economy by 4% and eliminate 7 million jobs. The stock market would also likely tank on the news. Congress has raised or suspended the debt ceiling in the past, but markets are increasingly losing confidence in a resolution this time. 
Bank of England economist says people need to accept they are poorer (2 min read)

The Bank of England's chief economist, Huw Pill, said people in the UK need to accept that they are poorer or prices will continue to rise. He urged people to stop trying to maintain their real spending power by bidding up prices, such as through higher wages. Workers demanding pay increases and businesses putting up prices add to inflation and cause prices to rise further. Inflation in the UK was at 10.1% in March, falling much slower than expected despite the consecutive rate hikes effort by the Bank of England.
Business & Stocks
Microsoft and Alphabet Deliver Strong Results (2 min read)

Microsoft and Alphabet reported a better-than-expected Q1 despite the market’s fear of gloomy big tech earnings this week. Both companies posted earnings that exceed analysts estimates. The intelligent cloud division was Microsoft’s biggest driver of growth in the first quarter, while Alphabet's advertising sales revenue began to stabilize after weakness in the previous quarters. Shares of Microsoft and Alphabet jumped more than 6% in the extended trading shortly after their earnings release and may support a tech rally when market opens.
First Republic shares plunge as $100 billion deposit flight jolts investors (3 min read)

First Republic Bank is facing challenges in regrowing its business after losing over half of its deposits. The bank reported more than $100 billion drop in deposits during Q1 due to the banking crisis. The deposit outflows were worse than expected, with many analysts suggesting that it could be difficult to recover from. First Republic plans to cut its expenses, including executive compensation, office space, and employees in Q2 to make up for the losses. Shares of the bank plunged nearly 50%, hitting multiple record lows, after the news.
Funds & ETFs Guide: How to Invest in the Electric Vehicle Revolution With ETFs (14 min read)

This article is a complete guide for how to capitalize on the growth in the EV industry through the use of ETFs. Although there are dozens of ETFs with exposure to the EV industry, they are categorized into three buckets: ETFs that invest in the entire EV industry (and beyond); ETFs that invest in a segment of the EV industry; and ETFs that invest in autonomous vehicles and other futuristic transportation technologies. A full list of the ETFs for each category and how they differ are available in the article.
Investors weigh up best ETFs to profit from China’s reopening (5 min read)

China-focused ETFs saw significant inflows at the start of 2023 but have level off in the recent month. Many investors are hesitant to invest, questioning if China is investable, due to recent geopolitical tensions and economic indicators. However, analysts predict China's economic recovery remains a priority for policymakers and that the country's tech sector has significant growth opportunities in the next couple of years. While it is divided on which ETFs are best to benefit this theme, some have suggested thematic or sector-specific funds in Hong Kong.
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