Buffett Deals, Nike Earnings, Oil Demand: 3 Things to Watch

By Sam Boughedda

Investing.com – Stocks hit their lows on Monday but still closed after Federal Reserve Chairman Jerome Powell said the central bank could move more quickly to raise interest rates and bring the economy under control. ‘inflation.

Powell said the Fed could raise rates by half a point instead of the usual quarter point. Inflation is at 40-year highs and the central bank is eager to get it under control so it doesn’t hurt economic recovery.

Oil continued to gain, however, something that has exacerbated inflation, especially since the outbreak of Russia’s war in Ukraine.

Reuters reported that the Russian Foreign Ministry had summoned US Ambassador John Sullivan to tell him that President Joe Biden’s comments about his Russian counterpart Vladimir Putin had pushed bilateral relations to the brink of collapse.

Biden is due to travel to Europe later this week to meet with members of the European Union and the North Atlantic Treaty Organization to discuss the West’s response to Russia’s attack on Russia. ‘Ukraine. EU members are reportedly considering banning Russian oil imports, although the region is more dependent on the energy source than the United States, which has already banned it.

Here are three things that could affect the markets tomorrow:

1. Berkshire Slot Machine

Warren Buffett’s Berkshire Hathaway (NYSE:BRKb) to acquire Alleghany Corporation (NYSE:Y) in deal worth approximately $11.6 billion, ending long lull in big deals of the conglomerate, which has $140 billion in cash waiting to be put to use.

Berkshire will pay $848.02 per share in cash for the owner of reinsurer TransRe. People will likely speculate on what else Buffett has in his deal pipeline.

2. Nike Revenue

Shares of Nike Inc (NYSE:NKE) gained 4.9% after the close on Monday after reporting earnings that beat analysts’ expectations for earnings per share and revenue. The company reported earnings per share of 87 cents on revenue of $10.9 billion. Analysts interviewed by invest.com Expected EPS of 71 cents on revenue of $10.63 billion.

Nike’s direct sales rose 17%, but its revenue from China, a big source of growth for the sportswear maker, fell 5% to $2.16 billion.

3. Oil prices still in sight

European Union countries are meeting on Monday ahead of US President Joe Biden’s arrival later this week to take part in a series of summits aimed at toughening the West’s response to Moscow following its invasion of Ukraine. Oil prices rose 7% on Monday to over $110 a barrel after briefly dipping below $100 last week.

–Investing.com and Reuters staff contributed to this report.

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Felix J. Dixon