Premarket stocks: Warren Buffett is still betting on the American economy

What’s Happening: Last Quarter, Warren Buffett’s Berkshire Hathaway (burqa) increased holdings of apple (AAPL) That’s an increase of 3.9 million shares, according to new financial disclosures. also increased its investment in Ally Financial (Ally)a financial services company headquartered in Detroit, acquired 21 million shares and acquired 2.3 million shares of Chevron.
Berkshire’s top holdings are now Apple, Bank of America, coca cola (unit), chevron (CVX) When american express (AXP)according to Refinitiv data.
Buffett has cut stakes in companies like Kroger (Korean), general motors (GM) When US Bancorp (USB)permanently closed positions at Verizon and Royaly Pharma.

But the willingness to continue buying by prominent investors shows continued confidence in where the US economy and financial markets are headed.

Berkshire reported about $3.8 billion in net equity purchases in the second quarter. That’s on top of more than $40 billion of his stock that Berkshire bought in the first quarter.

Why it matters: Given Buffett’s successful track record and consistent long-term focus, his investment patterns are watched closely by traders.

The economic data Mr. Buffett and others on Wall Street are currently scrutinizing are confusing, making their job difficult.

New York-area manufacturing suffered an unexpectedly large recession in August, according to a survey released Monday.The New York Federal Reserve said the Empire State manufacturing survey plunged 42 points. I was. This marks the second largest monthly decline on record, behind his April 2020 early in the Covid-19 pandemic.
Other indicators look more promising, as my CNN colleague Matt Egan recently pointed out.
  • The economy added more than half a million jobs in July. This pushed the unemployment rate up to his 3.5%, the lowest level since 1969.
  • Gasoline prices dipped below $4 a gallon.
  • Consumer sentiment has recovered from record lows.
  • The US stock market rose for the fourth consecutive week.

“This is not a recession, not even the same world as a recession,” said Mark Zandy, chief economist at Moody’s Analytics.

Should Disney spin off ESPN as sports betting grows?

disney (DIS) last week surprised Wall Street with strong earnings, thanks to strong Disney+ subscriber growth and healthy theme park attendance. But one activist investor thinks more can be done to revive the struggling stock.
Update: Daniel Loeb’s Third Point said Monday that it has bought new stakes in the entertainment giant and is lobbying for change, according to my CNN Business colleague Paul R. La Monica. reporting.

One of the most dramatic of those pitches is Disney’s spinoff from ESPN.

Loeb acknowledges that the sports network is a compelling component of a wide range of streaming bundles that include Disney+ and Hulu. However, he believes there is a “strong case” for ESPN to stand on its own, given the rapid growth of the sports betting industry.

“ESPN will have more flexibility to pursue business initiatives that may prove more challenging as part of Disney,” Loeb wrote in a letter to the company outlining his proposal.

CEO Bob Chapek said last week that his team is “working hard” on offering sports betting.

“We hope to be able to announce something in the future in terms of partnerships that will give us access to that revenue stream,” he told analysts.

Still, Loeb believes Disney stock would perform better if ESPN split.

Investor Insight: Disney shares rose more than 2% on Monday. But it’s still down nearly 20% this year, making the company one of the worst performers on the Dow.

Former WeWork CEO is once again soliciting investors

I’ve spent a lot of time thinking about the WeWork debacle. For me, and for many financial pundits, the bankruptcy of the company, which made its spectacular Wall Street debut in 2019, saw investors grab cash, pour money into unprofitable start-ups, and think little about the consequences. It can be read as a parable of Silicon Valley’s excesses that did not exist.

If you watched “WeCrashed” on Apple TV+, there were other lessons to be learned. Former CEO’s expulsion of his Adam Neumann was framed as a resurrection as the self-centered and unmonitored founder was subjected to an expired reality check (although he remained afloat with a golden parachute) .

But when is the story so uncluttered?

Neumann’s comeback: Andreessen Horowitz revealed Monday that he is backing Neumann’s latest venture, a residential real estate company called Flow. Her $350 million investment in a prominent venture capital firm has valued the startup at more than her $1 billion, The New York Times reported.
In a blog post, co-founder Marc Andreessen outlined his belief in Neumann, whom he called a “visionary leader.”

“The story of Adam and WeWork has been exhaustively documented, analyzed and fictionalized – sometimes with precision,” Andreessen wrote. “Despite all the hard work he put into his articles, it is often understated that he is the only person to lead a global company that fundamentally redesigned the office experience and changed the paradigm in the process. It’s appreciated.”

That said, the operational details are still lacking. With recession fears and market volatility disrupting the startup ecosystem, forcing once-booming companies to dramatically lower their valuations, Neumann is far ahead of his next move. will run in harsh environments.


home depot (HD) When walmart (WMT) We will report the results before the US market opens.

Also today: data on US housing starts and building permits for July arrives at 8:30 a.m. ET. Industrial production data continues at 9:15 am ET.

Tomorrow: Economists surveyed by Refinitiv expect to see US retail sales rise just 0.1% month-on-month in July.

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