The Daily Breakdown looks at Warren Buffett’s retirement from Berkshire Hathaway, as well as at the week ahead with earnings and the Fed.
Monday’s TLDR
- Buffett hangs it up
- Big week of earnings
- NFLX hit on movie tariffs
What’s happening?
Berkshire Hathaway was born from a 1955 merger in the textile space. Warren Buffett began accumulating shares, and in 1965, formed the investment conglomerate we know today. After 60 years at the helm, Buffett announced that he will retire this year, with Greg Abel taking over as CEO and Buffett remaining on as Chairman. It’s a day the investment community knew they’d see but weren’t sure when. Hats off to the GOAT for an absolutely remarkable career.
As for this week, it remains a busy stretch for earnings. Later today, companies like Hims & Hers, Ford, Palantir, and Realty Income will report.
Tomorrow features Ferrari, Advanced Micro Devices, Supermicro Computer, and Rivian.
Wednesday will be a key day, as Uber and Disney report in the morning. Then, at 2 p.m. ET, the Fed will announce its latest interest-rate decision. It’s not expected that they will cut rates, but investors will be focused on what Chair Powell has to say about the current economic landscape.
On Thursday, Peloton, Shopify, ConocoPhillips, The Trade Desk, Coinbase, and DraftKings will report earnings, rounding out a busy week of quarterly results.
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The Setup — Communications
The communications sector has been trading well lately, bouncing hard off the 2025 lows and recently clearing downtrend resistance. The XLC ETF is now above all of its key daily moving averages as well.
From here, bulls want to see the XLC stay above the $93 to $94 area. That would keep shares above the 200-day and 21-day moving averages, as well as that prior downtrend resistance line we just discussed.
If it can stay above that area, more upside could be in the cards. However, a break back below this area could usher in more selling pressure.
The top holdings in the XLC ETF include Meta, Alphabet, Netflix, AT&T and Verizon.
Options
On a dip, buying calls or call spreads may be one way to take advantage of a pullback. For call buyers, it may be advantageous to have adequate time until the option’s expiration.
For those that aren’t feeling so bullish or who are looking for a deeper pullback, puts or put spreads could be one way to take advantage.
To learn more about options, consider visiting the eToro Academy.
What Wall Street is Watching
SPY – The S&P 500 ETF (SPY) notched another day in the green, giving the ETF its 9th straight daily gain. Friday’s rally came after a better-than-expected jobs report, which showed that 177,000 jobs were added to the economy last month, coming in well ahead of economists’ expectations. Check out the charts for SPY.
NFLX – Shares of Netflix are under pressure this morning, down about 5% in pre-market trading after President Trump makes a push for 100% tariffs on foreign made films. Trump even went as far as to say it’s a “National Security threat.” Netflix is lower on the day, but so is Disney, Warner Bros Discovery, and other entertainment stocks.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.