Marketbites: Retail Earnings Ahead
Portfolio Manager Commentary:
Markets fell on Monday after large weekly gains seen last week on the back of easing inflation data. The S&P 500 lost 0.89%, the Dow Jones slid 0.63%, and the Nasdaq came down 1.12%. A lot of economic data is being released this week including retail sales, producer prices, industrial production, housing, and more. In addition, corporate earnings season will continue with a big emphasis on retail. Big retailers Walmart, Target, Kohl’s, Lowe’s, Home Depot, and Macy’s are all on deck for this week.
Fed Governor Christopher Wallace made remarks warning that the Fed has a ‘ways to go’ in fighting inflation. As such, Wallace believes that investors overreacted to last week’s soft inflation data and that markets should brace for more rate increases. Vice Chair Lael Brainard had something different to say yesterday, however. The central bank's number 2 argues that the Fed is likely to slow its pace of raising rates at its meeting next month. Brainard signaled the rate increase would likely be by 0.5 percentage point.
Chart of the Day:
Warren Buffett's company spent $9 billion buying stocks in the three months through September, according to its latest 13F filing. After markets closed, Berkshire Hathaway announced new positions in the shares of both Taiwan Semiconductor and Louisiana-Pacific, among other changes. Berkshire also added to its existing stakes in Occidental Petroleum, Paramount Global, Chevron, Celanese, and RH. Berkshire's five biggest stock holdings, seen below, were the same companies as the previous quarter.