After the worst day for the S&P 500 Index (^SPX) in three months, equities are trying to find their footing today. Gold is rising (again), while bonds and the US dollar are attempting to stabilize. Bitcoin continued its recent slump from $95,000, recently trading around $89,000.
President Trump just flew to Davos, Switzerland to join the World Economic Forum underway there. In his speech to the assembled political and business leaders, he touted American economic achievements and outlined his doctrine of focusing on the Western Hemisphere. In markets, the “Sell America” trade has resumed – though in a much less-aggressive fashion than we saw on Tuesday.
Speaking of which, stop me if you’ve heard this one before: Gold is up. The ultimate “safe haven” play in a world of increasing geopolitical and economic chaos has been rallying virtually nonstop since August. At last check, it was jumping another $103 an ounce to around $4,870. This Bloomberg story goes more in-depth on the trade, noting that gold is an “asset without a counterparty,” usually negatively correlated to the US dollar, and highly liquid due to large trading volumes around the world.
Source: Bloomberg
On the earnings front, streaming giant Netflix Inc. (NFLX) reported a 29% year-over-year jump in profit and an 18% rise in sales for the fourth quarter. The content company now has more than 325 million paying subscribers. Stil, Netflix stock dipped after revenue and cash flow projections for 2026 slightly missed analyst estimates. The firm also switched its cash-and-stock bid for Warner Bros. Discovery Inc. (WBD) to an all-cash offer.
Finally, the post-Warren Buffett era at Berkshire Hathaway Inc. (BRK.B) has begun – and successor Greg Abel appears to be making his first big move. Kraft Heinz Co. (KHC) said Berkshire may look to sell some of its 325 million KHC shares, which it acquired and used to orchestrate a merger between then-independent Kraft and Heinz in 2015. Berkshire already wrote down the value of the stake by $3.7 billion, and selling could be the first big step in a realignment of the firm’s portfolio under Abel.
