empty
09.11.2021 03:27 PM
US pre-market on November 9

Berkshire Hathaway's operating earnings rose thanks to the steady recovery of its railroad, utilities, and energy segment after the coronavirus pandemic. At the same time, Buffett continues to build up its cash pile, which has once again reached an all-time high.

It is worth noting the mixed trading before the market opens. US index futures traded mixed on Tuesday after major indices closed at record highs on Monday, boosted by a strengthening of infrastructure stocks. Futures contracts on the Dow Jones Industrial Average fell 75 points or 0.2%. Futures on the S&P 500 traded in a moderately negative zone, while futures on the Nasdaq 100 rose 0.1%.

This image is no longer relevant

Investors are awaiting the release of the October producer price index, which will show how much the cost of producing goods has risen. Economists expect producer prices to show an increase of 0.6% in October compared to the previous month.

As noted earlier, Berkshire said its myriad of businesses has benefited from the economic reopening as demand started to return to pre-pandemic levels. Operating earnings from its railroad, utilities and energy segment grew 11% year over year to $3.03 billion in the third quarter. "Beginning in the third quarter of 2020, many of our businesses experienced significantly higher sales and earnings relative to the second quarter, reflecting higher customer demand," Berkshire said in the report.

It is important that Berkshire continues to build up its cash pile, which reached a record $149.2 billion, up from $144.1 billion in the second quarter. Buffett has not made any significant acquisitions for several years, which is suggestive. If it prefers to leave the market, then in all likelihood its upward rally is coming to an end.

The record amount of cash came despite Berkshire's aggressive share buybacks. The company repurchased $7.6 billion of its own stock in the third quarter, bringing the nine-month total to $20.2 billion. Berkshire bought a record $24.7 billion of its own stock last year.

Buffett, however, declined to make a comment. It stressed that investors shouldn't put much emphasis on the quarterly changes in its investment gains or losses. "The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules," the conglomerate said in the quarterly report. Berkshire's shares are up more than 24% this year, sitting about 2% below its record high reached in May.

Whether or not Buffett leaves the US stock market and deliberately keeps its money in cash is the big question. However, the overheated stock market, which has shown phenomenal growth this year, needs a correction, which is certain to happen later this year, when the Fed will start to reduce its stimulus programme more actively.

Shares of GE rallied more than 7% in the premarket after the company announced it will split up into three publicly traded entities focused on aviation, health care and energy. GE said it will spin off its healthcare unit by early 2023 and energy unit by early 2024.

Palantir shares dipped 2% in the premarket even after the software and data analytics company's third-quarter revenue beat the Wall Street forecast. The company reported revenue of $392 million versus $385 million expected, according to Refinitiv. Palantir's earnings per share were in line with estimates. This led to a spike in volatility with no definite direction followed by profit taking by speculators.

Roblox, the online gaming company, rose more than 25% in morning trading after better-than-expected quarterly results. The report said the online gaming platform had posted revenues of $637.8 million versus $636.5 million.

PayPal shares fell more than 4% premarket after the digital payments company reported quarterly results. The company's revenue of $6.18 billion fell short of the consensus estimate of $6.23 billion. PayPal also issued a fourth-quarter forecast that fell short of analysts' expectations and provided disappointing guidance for next year.

This image is no longer relevant

Jakub Novak,
Especialista em análise na InstaForex
© 2007-2025
Selecionar intervalo de tempo
5
min
15
min
30
min
1
hora
4
horas
1
dia
1
s.
Ganhe com as variações das taxas das criptomoedas com a InstaForex.
Baixe o MetaTrader 4 e abra a sua primeira operação.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    PARTICIPE DO CONCURSO

Recommended Stories

Mercado dos EUA se recupera com o Fed mantendo as taxas estáveis

S&P500 O mercado dos EUA se recuperou após a decisão do Fed de manter as taxas de juros inalteradas. Principais índices dos EUA na quarta-feira: Dow: +0,9%, NASDAQ: +1,4%, S&P

Jozef Kovach 16:17 2025-03-20 UTC+2

Previsão para o S&P 500 para 20 de março de 2025

O S&P 500 teve uma sessão positiva de negociação ontem e iniciou o dia de hoje com uma forte performance. No entanto, toda a alta desde 14 de março ainda

Laurie Bailey 15:38 2025-03-20 UTC+2

Mercado acionário dos EUA em 20 de março: S&P 500 e Nasdaq recuperam sua posição

Os índices de ações dos EUA encerraram o dia com sólidos ganhos. O S&P 500 subiu 1,1% e o Nasdaq 100 fechou em alta de 1,41%. No momento, os futuros

Jakub Novak 15:14 2025-03-20 UTC+2

Visão geral do mercado dos EUA: recuo após crescimento. Foco no Fed. Não se espera nenhuma mudança na taxa

S&P 500 Visão geral do mercado em 19 de março Mercado dos EUA: Recuo. Consolidação. Foco no Fed. Principais índices dos EUA na terça-feira: Dow -0,6%, NASDAQ -1,7%, S&P

Jozef Kovach 14:47 2025-03-19 UTC+2

Mercado de ações dos EUA: dois dias de ganhos a partir dos níveis de suporte

S&P500 Mercado acionário dos EUA: dois dias de ganhos a partir dos níveis de suporte Instantâneo dos principais índices dos EUA na segunda-feira: Dow Jones: +0.9% NASDAQ: +0.3% S&P

Jozef Kovach 16:20 2025-03-18 UTC+2

Visão geral do mercado de ações em 18 de março: S&P 500 e Nasdaq sobem pelo segundo dia

Os índices de ações dos EUA encerraram o pregão de ontem em alta. O S&P 500 avançou 0,64%, enquanto o Nasdaq 100 subiu 0,31%. Na Ásia, os mercados também registraram

Jakub Novak 14:14 2025-03-18 UTC+2

Análise do mercado de ações em 17 de março: S&P 500 e Nasdaq permanecem sob pressão

Os futuros dos índices de ações dos EUA caíram depois que o secretário do Tesouro, Scott Bessent, classificou a recente queda do mercado como "favorável", reforçando as expectativas

Jakub Novak 15:44 2025-03-17 UTC+2

Mercado dos EUA: forte suporte formado para o S&P 500

S&P 500 Análise do mercado em 17 de março Mercado dos EUA: forte suporte formado para o S&P 500 Principais índices dos EUA na sexta-feira: Dow +1,7%, Nasdaq +2,6%, S&P

Jozef Kovach 13:49 2025-03-17 UTC+2

Donald Trump está apenas começando

A estrutura das ondas no gráfico de 24 horas do #SPX parece relativamente clara. A primeira observação importante é a formação global de cinco ondas, tão extensa que nem cabe

Chin Zhao 17:17 2025-03-14 UTC+2

Mercado de ações dos EUA: NASDAQ e SP500 passam por correção, 10% abaixo de seus máximos históricos

S&P500 Atualização do mercado em 14 de março Instantâneo dos índices acionários de referência dos EUA na quinta-feira: Dow -1.3%, NASDAQ -2%, S&P 500 -1.4%, S&P 500 at 5,521, faixa

Jozef Kovach 16:51 2025-03-14 UTC+2
Não pode falar agora?
Faça sua pergunta no chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.