Monday's Headlines: Warren Buffett Is Still Looking for His White Whale
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Tripadvisor (TRIP) +14.0%
Etsy (ETSY) +11.5%
Stitch Fix (SFIX) +9.1%
The Trade Desk (TTD) +6.7%
Zillow (Z) +5.8%
Moving Down ⬇️
ShotSpotter (SSTI) -6.2%
2U (TWOU) -4.1%
American Tower (AMT) -3.8%
Baozun (BZUN) -3.0%
1. U.S. markets look set to open higher this morning thanks to a fall in Treasury yields and positive news about new COVID-19 vaccines. Last week, the stock market faced some downward pressure due to rising interest rates — an environment that would typically push investors towards bonds and other less-risky assets. However, a fall in Treasury yields from their recent highs late on Friday has signaled a return of money back into equities, pushing the Dow Futures up as much as 200 points this morning. In addition to this, the Centers for Disease Control and Prevention advisory panel voted unanimously yesterday to recommend the use of Johnson & Johnson’s one-shot COVID-19 vaccine — a major step forward in efforts to reopen both the U.S. and global economy. More here.
2. It looks like Warren Buffett is still waiting for his white whale after it was revealed that Berkshire Hathaway (BRK.B) bought back a record-breaking $24.7 billion of its own stock last year. In his annual letter to investors published on Saturday, Buffett struck an optimistic note for the future of the U.S. ("Never bet against America") and admitted his own mistake in buying Precision Castparts back in 2016 — an investment that led to an "ugly" $11 billion write down. However, most investors are focusing on the fact that, once again, Buffett and his co-partner Charlie Munger seem to see no better use for Berkshire's massive pile of cash other than buying back Berkshire's own stock. You can check out the full letter from Buffett here.
3. The first of the major award ceremonies — the Golden Globes — took place last night, and unsurprisingly, it was the streaming services that were the stars of the show. Netflix (NFLX) reaffirmed its title as the OG of streaming by taking home 10 awards, the most for any studio. Other streamers weren't left out of the party, however, with Disney (DIS) taking home two awards for 'Soul' and both Amazon (AMZN) and Apple (AAPL) getting a nod too. However, it's impressive to see how far Netflix has come in just seven years since it picked up its first Golden Globe — and the first-ever for a streaming service — for 'House of Cards' in 2014. Check out the full list of winners here.
There are 2 companies on the MyWallSt shortlist reporting earnings today: