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And while Fed Chair Jerome Powell said that the central bank's staff does not predict a recession, he did say that the economy will need to further slow in order to defeat inflation. "We have seen the impact, but not to the extent that the market expected or the Fed expected. He pointed to the iShares MSCI USA Quality Factor ETF (QUAL) and the JPMorgan U.S. Quality Factor ETF (JQUA) as funds that are capturing some of the market rally without adding outsized risk. Those are growth-oriented defensive equities with strong balance sheets, high revenue growth, which is what investors seek during slow revenue or slow economic environments," Smith said. QUAL YTD mountain This quality factor ETF has risen more than 20% this year.
Persons: Jerome Powell, Powell, Venkat Balakrishnan, Savita Subramanian, Andrew Smith, Smith, Charles Champagne Organizations: Federal, " Bank of America, Delos Capital Advisors, CNBC, JPMorgan U.S, Quality, Visa, Mastercard, of America, Investors, Bank of America Locations: U.S, Dallas
CNBC Daily Open: The A.I. rally is too narrow
  + stars: | 2023-05-31 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +3 min
Everyone else, however, is a bystander reaping no benefits — and that could have implications for broader markets. This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Everyone else, however, isn't so much a loser, but a bystander reaping no benefits — and that could have implications for broader markets. Subscribe here to get this report sent directly to your inbox each morning before markets open.
Persons: Wood, We're, Andrew Smith, Javed Mirza, Ataman Ozyildirim, we've Organizations: NVIDIA, CNBC, . Semiconductor, Nvidia, Marvell, Broadcom, Big Tech, Apple, Microsoft, Delos Capital Advisors, Conference, The Conference Board Locations: Taipei, Dallas, Canada, U.S
CNBC Daily Open: The A.I. rally's too narrow
  + stars: | 2023-05-31 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +3 min
Everyone else, however, is a bystander reaping no benefits — and that could have implications for broader markets. This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Everyone else, however, isn't so much a loser, but a bystander reaping no benefits — and that could have implications for broader markets. Subscribe here to get this report sent directly to your inbox each morning before markets open.
Persons: Jensen Huang, Wood, We're, Andrew Smith, Javed Mirza, Ataman Ozyildirim, we've Organizations: Nvidia, CNBC, . Semiconductor, Marvell, Broadcom, Big Tech, Apple, Microsoft, Delos Capital Advisors, Conference, The Conference Board Locations: Taipei, Dallas, Canada, U.S
Traders on the floor of the NYSEStock futures were flat on Tuesday evening as investors kept an eye on the federal debt ceiling debate in Washington ahead of the final trading day of May. S&P 500 futures and Nasdaq 100 futures were each little changed. Heading into the final trading day of May, the Nasdaq Composite is up nearly 6.5% for the month. One factor that has weighed on the market in recent weeks is the fight over the debt ceiling. President Joe Biden and House Speaker Kevin McCarthy announced a deal over the weekend to cap federal baseline spending for two years and raise the debt ceiling, but the agreement has not yet been ratified.
Persons: Dow, We're, Andrew Smith, Joe Biden, Kevin McCarthy Organizations: NYSE Stock, Futures, Dow Jones, Nasdaq, Dow, Nvidia, Wall, Delos Capital Advisors Locations: Washington, Dallas
The optimism about inflation and the U.S. economy is quickly waning on Wall Street, and the early 2023 rally for stocks is fading. The market was under pressure again on Friday after a hotter-than-expected reading for personal consumption expenditures, sending rates higher and stocks lower. Economic updates Next week brings a new round of economic indicators to see how the sticky inflation is affecting consumers and business. Other looks at the economy will come through key earnings reports. Speech by Fed Governor Christopher Waller Friday: 9:45 a.m. Markit Services PMI 10:00 a.m. ISM Services PMI 3:00 p.m.
At the same time, several online retail stocks have boomed, thanks in part to China abandoning its zero Covid policy. That has created a large gap between some retail ETFs, with broader funds lagging behind those with an e-commerce focus. For example, the Amplify Online Retail ETF (IBUY) and ProShares Online Retail ETF (ONLN) gained 7.7% and 8.1%, respectively in the first five trading days of the year. IBUY YTD mountain Online retail ETFs like IBUY are off to a fast start in 2023. Any reversal there could push retail ETFs that also hold more traditional "brick-and-mortar" stores, back into the lead.
The Dow and S&P 500 have fallen for six straight days, with many of those seeing broad selling typical of so-called "washout" days. That can sometimes be a contrarian buy signal on Wall Street, but many investment professionals are skeptical that the selling is over. One reason is that earnings expectations for next year still show solid growth, which would be unlikely in the event of a recession. "But I have a hard time reconciling in my mind that the earnings story is going to be as good as we expect." Additionally, the dramatic moves in the bond and currency markets means that "something broke" and it may be smart to wait for that information to shake out, Smith said.
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