Stocks were little changed this morning after last week’s sharp sell-off.
There were no major economic news releases this morning.
Portugal’s central bank announced on Sunday that it is breaking up troubled lender Banco Espirito Santo, spending billions of euros to help shore up the firm and creating a bad bank to accept the bank’s toxic assets. The plan comes after weeks of speculation about how Banco Espirito Santo's problems could impact the broader European banking sector.
At midday the Dow was down 0.1%, the S&P 500 was flat while the Nasdaq was up 0.2%.
Stocks on the Move
Berkshire Hathaway (BRK.A)(BRK.B) released results for the second quarter of 2014 late Friday that were pretty much in line with our expectations. Revenue increased 11% year over year to $49.8 billion on improved operating results from each of Berkshire's main segments. Excluding the impact of investments and derivatives, revenue increased 8% year over year. With expenses rising at a slower rate than revenue, and most of the gains from investments and derivatives falling straight to the bottom line, Berkshire reported a 29% increase in pretax earnings (to $8.9 billion) and a 41% increase in net earnings (to $6.4 billion). Shares were up almost 2% at midday.
European markets were mixed after the Portuguese bank rescue. In late trading, the Paris CAC was up 0.3%, the FTSE 100 was flat while Germany’s DAX was down 0.6%.
Asian shares were also mixed on the day. The Shanghai Composite and Hang Seng were up 1.7% and 0.3% respectively while the Nikkei 225 was down 0.3%.