Welcome to this week’s edition of the Weekly Trading Insight! As we navigate through a dynamic market landscape influenced by technological advancements and key economic indicators, our aim is to equip you with the necessary insights to make informed trading decisions. This week, we delve into the latest market data, highlight significant trends, and identify opportunities that lie ahead.
Market Recap
- US 30: Closed at 43,416.00, down 760.9 points (-1.72%).
- US 500: Ended at 6,013.60, losing 104.0 points (-1.70%).
- Dow Jones: Finished at 43,428.02, down 748.63 points (-1.69%).
- S&P 500: Settled at 6,013.13, declining by 104.39 points (-1.71%).
- Nasdaq: Experienced the sharpest decline, closing at 19,524.01, dropping 438.36 points (-2.20%).
Feature Analysis: Berkshire Hathaway Reports Record Earnings, Cash Hits New High as CEO Transition Nears
Berkshire Hathaway posted record operating earnings of $47.4 billion in 2024, boosted by strong results from its insurance division, particularly GEICO, and increased investment income due to higher interest rates, pushing its cash reserves to a new high of $334.2 billion. CEO Warren Buffett signaled an imminent leadership transition to Greg Abel, praised investments in Japanese trading companies, emphasized a preference for equities over cash, and warned about inflation risks eroding bond values, despite mixed results across its broader businesses.
Trading Strategies and Ideas
- S&P 500 Index: The S&P 500 (SPX) briefly hit new all-time highs this week but failed to maintain momentum, drifting back into its recent range of 5,960–6,120. This inability to sustain a breakout suggests the index may see further near-term consolidation or weakness. Near-term technical outlook: slightly bearish.
- Russell 2000 Index: The Russell 2000 (RUT) experienced sharper declines this week, indicating increased selling pressure. After repeatedly failing to surpass its 50-day SMA, the index appears headed toward a key support test at its 200-day SMA. A breakdown below this level would signal more bearish momentum ahead. Near-term technical outlook: slightly bearish.
Upcoming Economic Events
- Monday (Feb. 24): No reports
- Tuesday (Feb. 25): Consumer Confidence, FHFA Housing Price Index, S&P Case-Shiller Home Price Index
- Wednesday (Feb. 26): EIA Crude Oil Inventories, MBA Mortgage Applications Index, New Home Sales
- Thursday (Feb. 27): Continuing Claims, Durable Goods, EIA Natural Gas Inventories, GDP (Second Estimate), Initial Claims, Pending Home Sales
- Friday (Feb. 28): Advanced International Trade in Goods, Advanced Retail Inventories, Advanced Wholesale Inventories, Chicago PMI, PCE Prices, Personal Income, Personal Spending
For detailed insights and more information, visit Reuters and Yahoo Finance.
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Disclaimer
This newsletter is for informational purposes only and does not constitute financial advice. Always do your own research and consider consulting a financial advisor.
