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Japanese trading houses rise after Buffett raises stakes
Japanese trading houses jumped at the open on Tuesday after Berkshire Hathaway raised its stake in five Japanese trading firms to average more than 8.5%.
Mitsui jumped 4.55%, Marubeni gained 3.44%, and Mitsubishi rose by nearly 4% while Itochu and Sumitomo rose nearly 3% each.
Japan’s top five trading houses saw renewed momentum thanks to Warren Buffett, bucking the trend as Japanese equities continued to drop a second day.
The firm noted that the aggregate value of these interests surpasses that of Berkshire-held stock in any country outside of the U.S., the firm said.
— Jihye Lee, Elliot Smith, Ruxandra Iordache
China expected to deliver cuts to its loan prime rates
The People’s Bank of China is expected to deliver rate cuts to its 1-year and 5-year loan prime rates later today.
Economists polled by Reuters forecast a 10 basis point cut to its 1-year loan prime rate and a 15 basis point cut to the 5-year loan prime rate, according to Factset.
China last delivered cuts to its LPRs in August 2022. Investors will eye today’s decision closely after the central bank lowered its medium term lending facility and its seven-day reverse repurchase rate.
— Jihye Lee
CNBC Pro: Analyst says this automaker could be next in line for a Tesla supercharger deal
A global auto giant may be the next company to sign a deal with Tesla to use its supercharger stations, according to RBC analyst Tom Narayan.
If the agreement comes to pass, the deal will be in the wake of similar partnerships Tesla has agreed with Ford and General Motors.
Investors have rewarded all parties to the deal in the past. The day following the agreement, Tesla and Ford’s shares popped by 4.7% and 6.2%, respectively. Both automakers’ stock prices have rallied by more than 25% since.
CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: This veteran investor’s funds have been outperforming since 2006. Here are his top strategies
Outperforming portfolio manager Jordan Cvetanovski has looked for certain attributes in the companies he picked in the past nearly 20 years.
And the results have proven to be consistent throughout the global financial crisis, the era of zero interest rates — and now, high interest rates.
One fund that Cvetanovski of Pella Funds Management managed beat its benchmark by a whopping 27% in a four-year period.
CNBC Pro subscribers can read more here.
— Weizhen Tan
A strong week — even with Friday’s weak finish
The three major averages hit notable milestones with last week’s wins, even though Friday ended on a down beat.
While the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite ended Friday’s session in the red, the three indexes were up for the week.
The S&P 500 leapt 2.6% for the week, its strongest weekly performance since March and the fifth positive week in a row — a first since it ended a streak of the same length in November 2021. The tech-heavy Nasdaq gained 3.25% on the week, its best since March and the eighth positive week in a row for the first time since it ended a 10-week streak in March 2019.
The Dow also cruised to a modest weekly win, adding 1.25% and notching its third positive week in a row since April of this year.
—Darla Mercado, Chris Hayes
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