Monday’s Headlines: Economic Recovery Boosts Berkshire

Monday’s Headlines: Economic Recovery Boosts Berkshire

Here were the biggest movers in the MyWallSt shortlist on Friday:

Moving Up ⬆️

Monster Energy (MNST) +5.5%

Silicon Valley Bank (SIVB) +3.6%

Axos Financial (AX) +3.1%

Nordstrom (JWN) +2.9%

ShotSpotter (SSTI) +2.7%

Moving Down ⬇️

TrueCar (TRUE) -20.2%

Trupanion (TRUP) -12.7%

Zillow (Z) -8.2%

Redfin (RDFN) -8.2%

Peloton Interactive (PTON) -6.3%

1. To shareholders delight, Berkshire Hathaway (BRK.B) posted results on Saturday that signaled economic recovery as its energy and railroads businesses continue to rebound. Berkshire’s operating earnings came in at $6.69 billion in Q2, up 21% year-over-year (YoY) whilst overall earnings jumped 6.8% YoY to $28 billion. As more commodities and goods are being shipped, Berkshire’s earnings for railroads, utilities and energy also increased over 27% from the prior year. While these results look impressive, Berkshire said it is still unsure of when earnings will return to normal as it cannot determine the lasting effects of the pandemic. See the full press release here

2. On Friday, Wall Street was greeted with new evidence that the labor market is recovering with July’s jobs report showing a 943,000 increase in payrolls. These findings are important as markets are closely watching anything that will help decide when the central bank will reduce supports it introduced to boost the economy during the pandemic. For example, the end of the government's bond-buying program might result in rising interest rates. Looking to major indexes, the Dow Jones (DIA) and S&P 500 (VOO) closed at fresh records Friday as markets continue to move higher thanks to a slew of impressive earnings results. In the upcoming week, investors will be analyzing the results from Disney’s (DIS), Ebay (EBAY), and Coinbase (COIN). Read the full story here

3. DraftKings (DKNG) shares jumped on Friday after the online betting company posted Q2 earnings that beat estimates and raised its outlook for the year. The gambling firm reported revenue of $298 million, up 320% YoY. DraftKings also now expects full-year revenue to come in at between $1.21 and $1.29 billion, up from previous guidance of $1.05 and $1.15 billion. As more states change their gambling laws, DraftKings is seeing more opportunities to expand its business, hence the bump in revenue guidance. After its impressive earnings reports and recent partnership announcement with Genius Sports (GENI), DraftKings is looking like a good bet for investors. Read the full press release here.

Some more earnings from Friday:

Tripadvisor (TRIP)
Thanks to reopenings across the globe driving vacation rates, Tripadvisor reported revenues of $235 million, up 91% from the previous quarter, as the company sees strength in the U.S. and European markets. The travel company used the call to update shareholders on its annual subscription-based membership program, Tripadvisor Plus, explaining that it had rolled out the service in the U.S.: “This is an example of our commitment to leveraging our platform’s unique strengths to deepen consumer engagement on our platform and drive value for partners.” See the full press release here

There are 4 companies on the MyWallSt shortlist that will report earnings today:

Chegg (CHGG)
Nautilus (NLS)
Planet Fitness (PLNT)
The Trade Desk (TTD)

Get this week’s full earnings calendar here.