Exploring Market Dynamics, Inflation, and Top Performers

Your Weekly Roundup of Essential Market News and Insights

Author

Justin Oh
April 14, 2023

📢 Welcome to this week's newsletter! 🗞️ Get ready for the latest insights on the financial world. 🌐 Discover March's job growth numbers 💼, the current state of U.S. inflation 📉, Warren Buffett's thoughts on bank failures 💥, supplier price changes 📊, ChatGPT's potential impact on stock predictions 🤖, and much more! 🎯 Don't miss out on key tweets 🐦 from finance experts, and our in-depth analysis on Perion Network Ltd. (PERI) 📈 and JPMorgan Chase's (JPM) stellar Q1 earnings 💰. Stay informed and ahead of the game! 🚀

📣 As a reminder, if you’re an accredited or serious investor looking for a community of serious intelligent stock investors head over to centsinvest.com and get 30 days FREE! 📣

 What You Need to Know

Headlines

Job growth totals 236,000 in March, near expectations as hiring pace slows

The Labor Department reported Friday that payrolls grew by 236,000 for the month, compared to the Dow Jones estimate for 238,000.

https://www.cnbc.com/2023/04/07/jobs-report-march-2023.html

U.S. Inflation Eased to 5% in March

U.S. inflation eased in March but underlying price pressures remained elevated.

https://www.wsj.com/articles/us-inflation-march-2023-consumer-price-index-fa6eba99

Warren Buffett says we're not through with bank failures

Investing legend Warren Buffett believes there will be more bank failures down the road even as the current banking crisis gets resolved.

https://www.cnbc.com/2023/04/12/warren-buffett-says-were-not-through-with-bank-failures.html

Supplier Prices Fell in March, Adding to Signs of Moderating Inflation

The producer-price index, which generally reflects supply conditions across the economy, fell 0.5% in March from the prior month.

https://www.wsj.com/articles/supplier-prices-fell-in-march-adding-to-signs-of-moderating-inflation-20d61755?mod=hp_lead_pos4

ChatGPT may be able to predict stock movements, finance professor shows

Alejandro Lopez-Lira, a finance professor at the University of Florida, used ChatGPT to parse news headlines for whether they're good or bad for a stock.

https://www.cnbc.com/2023/04/12/chatgpt-may-be-able-to-predict-stock-movements-finance-professor-says.html

On Twitter

 Trends In Focus

We want to discuss some concerns regarding Perion Network Ltd. that have led to a decision to reduce exposure to the stock. Over the past year, Perion has seen significant growth, partly due to its undervaluation and industry positioning. However, the stock now trades at around 14X free cash flow, transitioning from undervalued to fairly valued with potential risks. One of the factors contributing to Perion's stock price increase is the rise of Chat GPT, with the expectation that it will drive more revenue to Bing and, consequently, to Perion. However, the possibility of Perion losing the Bing contract has not been factored into the current price.

There have also been concerns surrounding management changes at Perion and the company's shift in direction from diversifying its revenue streams to focusing on its relationship with Bing. This strategy could make the investment riskier. Additionally, the company has not yet pre-announced its quarterly earnings, which may be a warning sign regarding their Q1 results.

Read the full write up here.

In a recent report from CNBC, JPMorgan Chase (JPM) announced its first quarter earnings for 2023, showcasing a strong financial performance. The banking giant has exceeded expectations, with a net income of $12.9 billion, or $4.23 per share. Analysts had anticipated earnings of $3.12 per share, demonstrating the company's impressive growth during the first quarter. JPMorgan Chase's revenues also rose to $33.1 billion, an increase of 8% compared to the same period last year. The bank's success can be attributed to its robust investment banking and trading divisions, which have flourished despite challenges in the market.

The CNBC report highlights that JPMorgan Chase's investment banking revenues climbed by 25%, reaching $3.6 billion in Q1 2023. This growth is credited to the strong performance of the bank's advisory services and debt underwriting, reflecting a thriving market for mergers and acquisitions. Additionally, the bank's trading revenues increased by 17% year-over-year, driven by the strong performance of the fixed income and equity markets. As JPMorgan Chase continues to surpass expectations, the bank's robust first quarter results provide a positive outlook for the remainder of 2023.

Read the full report here.

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