Oil stocks benefit from Warren Buffett’s new holdings

The S&P 500 added to its 2021 gains during a cut short trading week as a historic winter storm hit Texas and other parts of the country.

Texas energy companies were forced to shut down oil and gas production last week due to freezing temperatures, and West Texas Intermediate crude oil prices hit $ 60 a barrel for the first time since before the pandemic. Oil stocks were also boosted by Warren Buffett, who disclosed brand new stakes in oil major Chevron and telecommunications giant Verizon.

Bitcoin prices hit new all-time highs above $ 53,000 after several large companies, including Tesla, Mastercard, and Bank of New York Mellon, said they would invest or support bitcoin. Longtime gold bull Jeffrey Gundlach and CEO of DoubleLine Capital said on Wednesday that bitcoin may be a better investment at the moment than gold.

On Thursday, Treasury Secretary Janet Yellen said bitcoin is a “highly speculative asset” that must be regulated to “ensure that it is not used as a vehicle for obtaining transactions and that there is a investor protection “. Shares traded higher on Friday following Yellen’s comments that the danger of providing too little pandemic relief far outweighs the danger of providing too much.

Following:How the timing of your tax return could affect your third stimulus payment

The CEOs of Reddit, Robinhood, Citadel Securities and Melvin Capital testified before the House Financial Services Committee on Thursday and Friday to answer questions regarding the extreme volatility of GameStop in January and the decision of Robinhood and other brokers to temporarily limit the purchase of so-called “meme” actions.

Reddit CEO Steve Huffman said he found no evidence his WallStreetBets community was abused or manipulated in an attempt to shake up the stock market, while Robinhood CEO Vladimir Tenev and Citadel CEO , Ken Griffin, denied agreeing to limit the purchase of GameStop shares.

Walmart’s revenue misses

Walmart shares traded lower on Thursday after the retailer reported fourth-quarter profits lower than analysts’ expectations and said sales growth would likely slow in 2021.

This week, investors will turn their attention to the Home Depot and Square earnings reports on Tuesday, Nvidia on Wednesday and Airbnb on Thursday.

Even after the severe economic impact of the pandemic, companies in the S&P 500 are on track for an overall drop in revenues of just 1.1% for 2020, according to FactSet.

Following:Market rally driven by stimulus spending, vaccine contracts and falling COVID-19 cases

Economic figures

This week, investors will receive more key economic updates on Wednesday when U.S. Federal Reserve Chairman Jerome Powell testifies before Congress and on Thursday when the Bureau of Economic Analysis releases its estimate of U.S. GDP growth for the fourth. quarter 2020.

Benzinga is a financial information and data company headquartered in Detroit.


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Felix J. Dixon