August 11: Warren Buffett Sells Most Stocks Ever! Collapse In Stocks, Record Cold Weather (Recap ep288)

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In today’s Recap, Marcello informs us that Warren Buffett has sold more stock in the last quarter than at any other time in Berkshire Hathaway’s history, signaling a potential collapse in the markets. Global stocks have taken a severe hit, with the U.S. experiencing its worst trading session in two years and Japan suffering its biggest point drop ever, driven by a carry trade liquidation following an interest rate hike. The fallout has been massive, with the “Magnificent 7” companies in the U.S. losing over half a trillion dollars in a single day, marking the worst day of trading since 1987. Meanwhile, as markets plunge, the U.S. is also grappling with record-breaking cold weather, with over 30 cities experiencing temperatures typically seen in October. Mainstream media has largely been silent on the dozens of nighttime low-temperature records being shattered across the country.

The 7 most-valuable U.S. tech companies, the Magnificent 7, lost a combined $1 trillion in market value, at the start of trading on Monday. The losses were later pared in the session ending down $650B in market capitalization. Nvidia shed over $300B in market cap at the opening bell, though it quickly recovered about half of its loss. Shares of the chipmaker closed down -6.4% for a loss of $168B. Apple & Amazon’s valuation plummeted $224B & $109B, respectively, at the market open. Apple ended down -4.8%, or $162B in market cap. Amazon dropped -4.1% at the close, or $72B.
U.S. stock markets moved far higher on Thursday, with the S&P 500 in its best session since 2022, after the latest data release on the U.S. economy concerning jobs. Weekly initial claims fell to a lower-than-expected 233K, down from a revised-up 250K, the week before. The data came following last week’s weak jobs report. Treasury bonds fell, with the 10-year yield hitting 4%
Japan’s current account surplus for June came in at 1.533T yen ($10.2B), lower than the 1.789T yen expected by economists. Japan posted a current account surplus of 12.68T yen (about 87B U.S. dollars) in the 1st half (H1) of 2024, helped by record returns on foreign investments, amid the yen’s depreciation & a smaller trade deficit.
Airbnb shares fell near -14% in after-hours trading on Tuesday at $112.75, after the company reported Q2 earnings that missed analyst expectations & warned that it’s seeing signs of slowing demand from U.S. customers. Earnings per share came in at $0.86 versus $0.92 expected. Revenue was $2.75B vs. $2.74B expected. Revenue did increase +11% year-over-year. Airbnb reported a net income of $555M down -15% from $650M, or $0.98 per share, in the year-ago quarter. The company guided to Q3 revenue of $3.67B to $3.73B, but also warned that it expected moderation in y/y growth, relative to the current quarter. The stock is down -18.36% in the past 3 months, -4.16% in 2024 & -6.51% y/y, with a market cap of $80.71B.
Many analysts are predicting that gold prices will continue to rise, as investors focus on Federal Reserve interest cuts, while ETF inflows & central bank buying continue to provide support against a backdrop of geopolitical risk. June’s purchases were once again led by emerging market central banks. Uzbekistan & India both added 9 tonnes to their gold reserves during the month.
The electric vehicle stock Rivian Automotive fell -6.86% on Wednesday at $13.79 after the U.S. company’s net losses in Q2 widened to $1.46 B from a Q1 loss of $1.45B & from $1.2B in the year-ago period. The loss was nearly $300M worse than Q2 last year.The company did top expectations for certain metrics, with an adjusted loss of $1.13 per share. Analysts surveyed were expecting a loss of $1.21 per share. Rivian’s financial losses have crept up, as it pushed out the last of its 1st-generation R1 trucks & SUVs in favor of newer, more cost-efficient versions in a sign of just how much the company could use the $5B it could get as part of a recently announced deal with Volkswagen Group.
U.S. Vice President Kamala Harris ended weeks of speculation on Tuesday by choosing Minnesota Gov. Tim Walz a Democrat , as her running mate. 1st elected to Congress in 2006, Walz served in the House of Representatives for 12 years & rose to become the top Democrat on the powerful Veterans Affairs Committee, before heading home in 2019 to lead the North Star State. Walz was not only popular on in Congress, but he also had the distinction of being the highest-ranking enlisted soldier in the history of Congress, a status that allowed him to gain supporters in both parties.
After sweltering in its hottest July in observed modern history, China has been hit by extreme heat, particularly in the east & south of the country. Zhejiang’s provincial capital Hangzhou recorded a 41.9C historical high on Aug. 3.It was reported on Thursday, that at least 2 people have died from heat-stroke in 1 Chinese city, & many more have fallen ill, as temperatures hovered around 40 degrees Celsius (104 degrees Fahrenheit) for the 8th day on the eastern seaboard. Over the next 3 days, most areas south of the Yangtze River, like in Shanghai, are expected to get hit by 37C-39C heat, with temperatures in parts of Anhui, Jiangsu & Zhejiang provinces exceeding 40C, forecasters have stated.

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