Morning Brief: Buffett, Dimon slam quarterly profit forecasts
Thursday, June 7, 2018
What to watch today
The June rally continues. Stocks finished higher across the board on Wednesday with the Dow adding 346 points, or 1.4%, to pace gains among the major indexes. The S&P 500 and the Nasdaq were also higher, however, as the benchmark S&P 500 rose 0.86%, or 23 points, and the Nasdaq added 0.67%, or 51 points. After just four trading days in June, each of the major indexes are up more than 2% for the month.
On Thursday, the economics and earnings calendars are fairly quiet, as they’ve been for most of the week, with the weekly report on initial jobless claims, as well as the Fed’s latest report on household net worth, highlights on the economics side.
And on the earnings calendar, notable reports out Thursday should include results from J.M. Smucker (SJM), Vail Resorts (MTN), and Broadcom (AVGO).
Top news
Buffett, Dimon say quarterly profit forecasts harming economy: Billionaire investor Warren Buffett and JPMorgan Chase (JPM) Chief Executive Jamie Dimon voiced concerns that the financial markets’ focus on short-term goals is hurting the economy and urged companies to move away from providing quarterly earnings guidance, according to the Wall Street Journal. The pressure to meet short-term estimates has contributed to a fall in the number of U.S. public companies, wrote Buffett, chairman of Berkshire Hathaway Inc (BRKA), and Dimon in an article on Wednesday. [WSJ]
Kudlow on Trump’s trade disputes with G7: Donald Trump’s top economic adviser, Larry Kudlow, called trade tensions shadowing the G-7 conference beginning Friday “a family quarrel” and said Trump will meet one-on-one with Canadian Prime Minister Justin Trudeau and French President Emmanuel Macron at the summit. Trump is expected to attend the Group of Seven summit on Friday and Saturday with the leaders of the world’s largest economies before flying to Singapore for a historic meeting with North Korean leader Kim Jong Un on June 12. [Bloomberg]
Icahn buys small stake in drugmaker Allergan: Bllionaire investor Carl Icahn has acquired a small stake in Allergan Plc (AGN) at a time when the drugmaker is under pressure from other activist shareholders, people familiar with the matter said on Wednesday. Icahn’s intentions are not clear, though he has been a longtime supporter of Allergan Chief Executive Brent Saunders. [Reuters]
Tech company shareholder meetings turn testy: Usually placid Silicon Valley shareholder meetings have become targets for protesters this year, the latest example of a backlash against the technology industry’s growing power. [Bloomberg]
For more of the latest news, go to Yahoo Finance
Yahoo Finance Originals
The Medicare crisis is almost here
It’s the end of the world as we know it, and investors feel bullish
Airbnb’s growth seems to be slowing down
Sports media investor George Pyne: ‘There’s going to be a Rupert Murdoch of digital’
—
Like what you just read? Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. And feel free to share it with a friend!
The Morning Brief provides a quick rundown on what to watch in the markets, top news stories, and the best of Yahoo Finance Originals.
