What happened this week
US Stocks rallied on Friday, the Dow Jones Industrial Average closed up 400 points, or 1.26%. The S&P 500 and Nasdaq Composite ended the session up 1.36% and 1.28%, respectively. However, all three major indices closed lower for the week ending their current positive streak.
The Federal Reserve, in a strongly anticipated move, raised its short-term borrowing rate by 0.75 percentage point to a range of 3.75%-4%, the highest level since January 2008. Earlier in the week stocks fell as Fed Chair Jerome Powell dismissed the idea that the Fed may be pausing rates hikes soon, although he did say that he expected a discussion at the next meeting or two about slowing the pace of tightening.
As of September, inflation is up 8.2% from a year ago, according to the Bureau of Labor Statistics’ consumer price index. That is a near four-decade high, indicating retailers may be expecting a more challenging holiday season. A year ago, consumers shopped early and spent more to secure gifts as many stores struggled to maintain inventory due to supply chain disruptions. This year, major retailers are swimming in extra inventory as consumers are spending less on items like clothing and electronics.
Berkshire Hathaway reported operating earnings totaling $7.761 billion in the third quarter, up 20% from year-earlier period. The conglomerate spent $1.05 billion in share repurchases, bringing the nine-month total to $5.25 billion. The Omaha-based company suffered a $10.1 billion loss on its investments during the third quarter’s market rollercoaster, however.
This week:
Tues Nov 8: Election Day
Thurs Nov 10: Consumer Price Index; Jobless Claims
Fri Nov 11: Veteran’s Day - Equity Markets Open, Bond Market Closed
