Here's how Apple might take AI to the next level

By Philip van Doorn

Also, new index ETFs to help investors narrow their focus and an interview with Maurice Saatchi.

Apple Inc. has done well for its long-term shareholders, with a 10-year total return of 896% through Thursday with dividends reinvested, compared with a 234% return for the S&P 500.

But the iPhone maker's deliberate approach to product development (and product announcements) can make for some frustration over the short term.

Apple made rumblings about artificial intelligence when announcing new iPad Air models this week. The company is expected to provide more detail on its plans for AI technology at its Worldwide Developers Conference on June 10.

Cody Willard explained how Apple's (AAPL) approach to data privacy might lead to AI on the iPhone that can do actually do things, unlike chatbots which are now limited to question-and-answer routines as data is processed on remote servers.

Click on Apple's ticker for complete daily coverage of the company. Here are other recent examples:

Apple apologizes for new iPad ad that shows musical instruments being crushedApple's walled ecosystem is cracking in Europe, but revenue is still protectedHere's how much Buffett's Berkshire Hathaway could make from Apple's dividend increase

This new batch of ETFs can help investors target the most dynamic economies

In this week's ETF Wrap, Isabel Wang explained how investors seeking low-cost index funds that hold stocks outside the U.S. have new opportunities to narrow their choices.

More coverage of exchange-traded funds: Bitcoin ETFs helped drive the crypto's price higher. That may no longer be the case.

Mother's Day misperceptions

If you have struggled to come up with thoughtful ideas for Mother's Day presents or celebrations, put on your thinking cap, consider the gift of time and stay away from anything that would lead to an even greater workload for the mother you are celebrating:

This Mother's Day gift is a guaranteed hit - and costs $0Is this the worst Mother's Day gift ever? 'I've been happily married for six years, but that could change after my husband's "generous" suggestion.'

Utility stocks heat up

Here's a look at the 11 sectors of the S&P 500 SPX, sorted by one-month returns through Thursday, with dividends reinvested. The full index is at the bottom and returns are also shown for longer periods, to reflect the stock market's seesaw pattern in 2022 and 2023, as investors reacted to rising interest rates.

   Healthcare                1-month return  2024 return  2023 return  2022 return  Return since end of 2021 
   Utilities                           8.2%        13.7%        -7.1%         1.6%                      7.3% 
   Consumer Staples                    3.7%         8.9%         0.5%        -0.6%                      8.8% 
   Communication Services              0.4%        19.5%        55.8%       -39.9%                     11.9% 
   Financials                          0.4%        11.2%        12.1%       -10.5%                     11.6% 
   Industrials                         0.3%        10.6%        18.1%        -5.5%                     23.5% 
   Health Care                         0.0%         5.5%         2.1%        -2.0%                      5.6% 
   Information Technology             -0.2%        11.2%        57.8%       -28.2%                     26.1% 
   Consumer Discretionary             -0.7%         3.5%        42.4%       -37.0%                     -7.2% 
   Materials                          -1.4%         7.6%        12.5%       -12.3%                      6.2% 
   Energy                             -3.2%        13.7%        -1.3%        65.7%                     85.9% 
   Real Estate - SEC                  -3.2%        -4.6%        12.4%       -26.1%                    -20.8% 
   S&P 500                             0.2%         9.8%        26.3%       -18.1%                     13.6% 
                                                                                             Source: FactSet 

Joseph Adinolfi explained why the utility sector has been surging.

And in the daily Need to Know column Friday morning, Jamie Chisholm pointed to this market rally's warning signals for the U.S. economy.

Another from the Need to Know column: Three overlooked stocks from a Spanish quant: 'Now is not a time everyone is going to win.'

How do you coax workers to return to the office?

A decent cup of coffee might help.

How to stop inflation

Last week Starbucks Corp. (SBUX) reported significant declines in comparable-store sales and transaction volume, possibly underscoring a pushback by consumers against high prices.

Coverage of price inflation in the financial media usually centers on central-bank policy and government spending. But inflation also reflects peoples' willingness to pay higher prices for some things that they don't need. Vanessa Wong looked into consumer-spending trends and expectations: What might help consumers may also hurt investors.

Related coverage:

Financial experts told consumers to stop 'wasting' money eating out. They're finally listening - and companies are rattled.Morgan Stanley's Mike Wilson offers a stock-market playbook to cope with the cautious consumer

For investors, it can help to understand the relationship between risk and reward

Mark Hulbert explained how volatility can hurt investors. Everyone should understand the math behind volatility drag. In other words, average investment returns don't tell the whole story.

Executive interview: Maurice Saatchi

Charles Passy interviewed Maurice Saatchi, the co-founder of M&C Saatchi (UK:SAA), who discussed his new book about busting long-held beliefs and shared advice on how to avoid boring conversations at parties and make friends at the same time.

How to handle this difficult housing market

The "lock-in effect" means many potential home sellers aren't budging. They don't relish the prospect of switching from a mortgage loan with a 3% interest rate to a 7% loan. But there are still real-estate investment opportunities. Aarthi Swaminathan shares ideas about where and what to buy in this video.

Read on: Home prices keep climbing nationally, but they are falling in these 15 markets

Disney - half full or half empty?

On Tuesday, Walt Disney Co. (DIS) reported what seemed to be a pretty good set of quarterly financial results, with the company expecting its Disney+ streaming business to become profitable in the fourth quarter. But the stock fell 10% that day. Here are reactions, analyses and news from the week:

Disney's theme parks were a bright spot this quarter, but major competition loomsDisney's stock nears key support line after creating a bearish 'island reversal'Disney+, Hulu and Max to be part of new bundle as streaming rivals team up

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-Philip van Doorn

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05-11-24 0501ET

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