Highlights: Bond yields rose for the second day, with the 2-Year US treasury back above 4%. The uptick in rates has pressured US stocks, especially the tech sector. The market seems to be looking beyond the challenges in the banking sector yesterday and recognizes that US economic growth continues to be resilient.

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Home prices drop for seventh-straight month to start 2023 (3 min read)
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Rising interest rates have continued to pressure home prices in the US, according to the latest S&P/Case-Shiller Home Price Index. The index fell 0.5% in January compared to the previous month, marking the seventh-straight monthly decline. The report's 20-City Composite index, which tracks prices in the 20 largest metros, showed prices fell 0.6% over the prior month in January and rose just 2.5% over last year. As the Fed recently hiked rates and may remain elevated in the near term, it could further impact future home prices.

BlackRock warns that investors are making a mistake by betting on the Fed to cut rates (4 min read)
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BlackRock and other Wall Street firms warn that investors are too confident the Fed will cut interest rates this year and could face negative consequences. Market pricing on Tuesday still indicates the Fed would maintain the key rate at current levels and then start reducing it in July, which is inconsistent with the Fed's unofficial forecast. BlackRock advises clients to focus on investments indexed to inflation, such as fixed-income and very short-duration government bonds, and warns against investing in US stocks.

AMC stock price surges on report Amazon might buy movie theater chain (2 min read)
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AMC Entertainment jumped more than 13% on Tuesday after a report that Amazon was looking to buy the movie theater chain, which has been struggling to recover since the pandemic. The report suggests that Amazon could use AMC's movie theaters to promote its Amazon Prime movies, cross-sell other Amazon services, and serve as a local distribution hub for Amazon products. However, AMC’s CEO responded to the news and said they do not reply to rumors and speculations. The report was initially from a newsletter published on Substack.

Apple launches its Pay Later service (2 min read)
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Apple has launched a new service called "Apple Pay Later" that enables users to split purchases into four payments over six weeks, with no interest or fees. The loan can be applied for in the Apple Wallet app without affecting the user's credit score. Merchants that already accept Apple Pay will not need to make any changes. The company will first offer a prerelease version to select individuals and plans to expand access to eligible users in the coming months. Affirm, a top buy now, pay later company, was down more than 8% after the news. 

F/m Launches 5 More Single Security Treasury ETFs (2 min read)
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F/m Investments recently launched five more products, including 3, 5, 7, 20, and 30-year, to complete its family of US treasury ETFs. The firm now has a full suite of 10 US treasury ETFs, and each only holds a single T-bill that was most recently issued for a month before rolling into the next new issue. F/m Investments’ CIO believes that their ETF suite can simplify the investment process for investors seeking laddered bond portfolios. The ETFs are listed on Nasdaq, each with an expense ratio of 0.15%.

Cathie Wood’s ARKK ETF Pressured a Bit. Has It Bottomed? (2 min read)
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The ARK Innovation ETF (ARKK), a popular ETF known for its bets on disruptive tech companies, gained about 20% this year after slipping by more than 80% in 2022. So far this year, ARKK has outpaced the major indexes, but many investors have questioned if more losses are to come. This article examines the ETF in terms of technical analysis to identify where the current support and resistance are at. However, the outlook will depend heavily on Tesla, Zoom, Coinbase, and Exact Science, as they account for more than 36% of the ETF.

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Thomas

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