Commenting on Warren Buffett’s Berkshire Hathaway buying Barrick Gold Corp (NYSE:GOLD) and today’s trading Gorilla Trades strategist Ken Berman said:
Q2 2020 hedge fund letters, conferences and more
The major indices are mixed and flat at midday, with the tech sector and consumer-related issues showing relative strength. Trading activity and volatility continue to be very relatively low, with all eyes on the S&P 500, which is still hovering just below its all-time high which it set before the start of the pandemic. While the number of new COVID cases continues to slowly drift lower in the U.S., the situation in Europe remains stance, and that continues to weigh on global risk assets and limiting the upside in U.S. stocks as well.
Odey's Brook Absolute Return Fund was up 10.25% for the third quarter, smashing the MSCI World's total return of 2.47% in sterling. In his third-quarter letter to investors, which was reviewed by ValueWalk, James Hanbury said the quarter's macro environment was not ideal for Brook Asset Management. Despite that, they saw positive contributions and alpha Read More
Buffett's Stake In Barrick Gold
In economic news, the NAHB Housing Market Index came in at 78, well above the consensus estimate of 74, confirming the strength of the sector. On the other hand, the Empire State Manufacturing Index, missed expectations by a wide margin, adding to the selling pressure on the key cyclical sectors. Gold and gold-miners have been pushing higher in early trading on the news that Warren Buffett's Berkshire Hathaway (BRK-A, -1.4%) recently bought a stake in Canadian miner Barrick Gold (GOLD, +11.4%), sending the shares of the company soaring.
Dow: 27,851, - 80 or 0.3%
S&P 500: 3,382, + 10 or 0.3%
Nasdaq: 11,084, + 75 or 0.7%
Russell 2000: 1,584, + 6 or 0.4%
Market breadth has been in line with the performance of the major indices this morning, with advancing issues outnumbering decliners by a 6-to-5 ratio on the NYSE at midday. Only 6 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 89 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a mixed and choppy afternoon. While most of the key sectors are trading in the green, energy-related issues, industrials, and financials have been clearly lagging the broader market in early trading, due to the lingering COVID-related fears. Stay tuned!