Episode 06: Mixed Feelings
Big news coming off the weekend that has the markets mixed today is the Berkshire Hathaway Annual Meeting. Warren Buffet, an investment luminary, took a very moderate tone at his annual meeting. Leaving investors concerned about what’s to come. Many were expecting Berkshire to pounce on M&A opportunities that the current environment has brought on. Although Buffet is taking a different approach and keeping Berkshire in a very large cash position. In addition, selling $6 billion of his investment in the airlines because he just doesn't see how this industry will recover quickly and fundamentally stating that industry has changed because of covid. Business travel makes up around 75% of the airline profits and with things moving virtual for safety we don’t know how this will pick up after the recovery cycle of covid. Warren continues to stress that we should always bet on America but at this point, the impact is very unpredictable.
Explosive Update - California Fed loan $348M credit line of $10B to pay unemployment claims.
Kicking off the markets today we start the week mixed.
Dow 26 pts up .11%
S&P 12 pts up .42%
Nasdaq 105 pts up 1.23%
IPO Side
Ayala Pharma, an Israeli oncology drug company, set IPO terms to 3.3 million shares at $14-$16.
Kingsoft Cloud, a Chinese cloud storage and distribution company 25 million shares at $16-$18. It would have an initial market cap of $3.4 billion and plans to trade on the Nasdaq with JPMorgan as lead underwriter.
In summary, this week will continue to be mixed with the tech sector continuing to stay positive and specific companies that are focused on collaboration and work remote enablement. This week we will continue to see the earnings results from major retail sectors and I will bring you the key updates all week. Continue to stay safe and I will see you Friday with the end of the week recap.
Empezamos la semana en la bolsa mezclando.
En resumen, esta semana continuará la bolsa de valor con resultados mezclado con el sector de tecnológico que sigue siendo positivo y específicamente las empresas que se concentrar en la colaboración y la habilitación remota del trabajo. Esta semana continuaremos viendo los resultados de ganancias del sector retail más importante y le traeré resultados clave durante toda la semana. Cuidense y nos vamos el viernes con el resumen de fin de semana.
Thank You/ Gracias