• Why did Warren Buffett sell off Apple stock?
• Why is Japan's currency causing a global market selloff?
• What did Airbnb reveal about consumer spending?
MARKET MOVEMENTS
Dow Jones
S&P 500
Nasdaq
39,073.10(+0.80%)
5,248.30(+0.94%)
16,354.94(+0.98%)
Opening price as of 08/08/2024 compared to last close
IN THE HEADLINES
Warren Buffett’s Cash Stockpile Signals Economic Turbulence Ahead
Warren Buffett’s Berkshire Hathaway has significantly increased its cash reserves to nearly $277 billion while selling about half of its stake in Apple, signaling caution about the broader U.S. economy and stock market valuations. Despite posting record operating profits in Q2, Berkshire sold more stocks than it bought for the seventh consecutive quarter and reduced its stock buybacks. Buffett’s moves suggest a defensive stance amid economic uncertainties, including a recent stock market selloff and a weak jobs report. While Berkshire’s insurance businesses, particularly Geico, contributed significantly to its profits, other sectors are showing signs of slowing consumer demand. Read more
Japanese Stocks Plunge, Intensifying Global Market Rout
Japanese stocks suffered their worst decline since 1987 as the yen surged to a seven-month high against the U.S. dollar, triggering a global stock selloff. The swift unwinding of the yen carry trade—where investors borrow cheap yen to invest in higher-yielding assets like U.S. stocks and bonds—has led to significant market volatility. This selloff is driven by the yen's appreciation and Japan's recent rate hikes. Additionally, concerns about the U.S. economy, exacerbated by Friday's jobs report, and seasonal market declines have heightened investor anxiety. Wall Street is now watching closely for potential contagion effects from this major economy's meltdown, recalling past crises driven by interest rate changes like the collapse of Silicon Valley Bank. Read more
Airbnb Stock Drops 14% After Warning of Slowing U.S. Demand
Airbnb’s stock fell 14% to a record low on Wednesday following the company’s report of a slowdown in U.S. travel demand and rising marketing costs. Although revenue increased by 11%, earnings missed expectations, with net income dropping 15%. Analysts are worried about the effects of higher marketing expenses amid declining demand and competitive pressures. Airbnb’s executives reported shorter booking lead times and slower U.S. demand, and forecast that marketing costs will exceed revenue growth in the upcoming quarter. Read more
TradeUP TIDBITS
Jobless Claims Fall More Than Expected to Ease Recession Fear
Jobless Claims Fall More Than Expected to Ease Recession Fear
Initial unemployment insurance filings fell more than expected last week, easing concerns about a weakening U.S. labor market and economy. The Department of Labor reported 233,000 new jobless claims for the week ending August 3, down from 250,000 the previous week and below the anticipated 240,000. This decline follows a peak in claims for the week ending July 27, which was the highest since August 2023.
A portion of a company's profit paid to shareholders. Public companies that pay dividends usually do so on a fixed schedule although they can issue them at any time. Unscheduled dividend payments are known as special dividends or extra dividends.
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