The S&P 500 traded higher last week for the second week in a row and has now more than erased its initial losses following the Russian invasion of Ukraine.
In a speech to the National Association for Business Economics on Monday, U.S. Federal Reserve Chair Jerome Powell said “inflation is much too high” and that the Fed is prepared to take a more aggressive approach to monetary policy tightening if necessary. Specifically, Powell said he and other Fed members are willing to raise interest rates by “more than 25 basis points” at a time if appropriate.
On Monday, legendary investor Warren Buffett’s Berkshire Hathaway announced an $11.6 billion buyout of insurance company Alleghany. The deal is one of Berkshire’s five largest acquisitions in history and the largest since its $37 billion buyout of Precision Castparts in 2016.
On Tuesday, Tesla CEO Elon Musk oversaw the opening of the carmaker’s long-delayed Berlin manufacturing facility, which he says will produce up to 500,000 vehicles annually. Musk said new orders from the Berlin plant will be delivered as soon as April.
On Thursday, BlackRock CEO Larry Fink said he believes Russia’s invasion of Ukraine will end a three-decade era of economic globalization. In his annual letter to BlackRock investors, Fink said the “economic war” international companies are waging on Russia is forcing the U.S. and other countries to reassess their reliance on foreign nations for energy, resources and manufacturing.
Bringing down the house
Shares of homebuilder KB Home dropped nearly 10% last week after the company reported a first-quarter earnings miss in a slowing U.S. housing market challenged by rising mortgage rates and supply chain disruptions.
Investors will get more earnings numbers in the week ahead, including reports from XPeng on Monday, Lululemon and Micron on Tuesday and Walgreens on Thursday.
At least 358 S&P 500 companies have mentioned “supply chain” during their fourth-quarter earnings calls, according to FactSet.
In the coming week, investors will get more key economic updates on Wednesday when the Bureau of Economic Analysis releases its updated fourth-quarter U.S. GDP growth estimate and on Friday when the U.S. Labor Department releases its March jobs report.
Benzinga is a financial news and data company headquartered in Detroit.