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[Introduction] Giants continue to lay off employees! Warren Buffett, the stock god, reduced his holdings significantly in the second quarter!

On Wednesday, August 14, Eastern Time, the three major U.S. stock indexes closed slightly higher, with the Nasdaq recording its fifth consecutive day of gains. The July CPI data showed that inflation had cooled, and market expectations for interest rate cuts increased again.

Buffett's Berkshire Hathaway increased its holdings in Occidental Petroleum and ACE Insurance in the second quarter. By the end of the second quarter, the total market value of Berkshire Hathaway's holdings fell from $332 billion to $280 billion.

The layoffs of giants continue! Paramount Universal announced a 15% layoff, involving about 2,000 people; Cisco will start a second round of large-scale layoffs, cutting more than 6,300 jobs.

Nasdaq recorded five consecutive positive days

July CPI data raises expectations of rate cuts

As of the close, the Dow Jones Industrial Average rose 0.61% to 40,008.39 points; the S&P 500 rose 0.38% to 5,455.21 points; and the Nasdaq rose 0.03% to 17,192.6 points, marking its fifth consecutive day of gains.

The U.S. Bureau of Labor Statistics reported that the U.S. Consumer Price Index (CPI) rose 2.9% year-on-year in July and 0.2% month-on-month. The core CPI, which excludes food and energy costs, rose 0.2% month-on-month and 3.2% year-on-year.

The year-on-year increase in CPI in July was the lowest since March 2021, while the year-on-year increase in core CPI was the lowest since April 2021.

Fed's Goolsbee said the policy is "very restrictive" and the economy is not overheating, and the economic situation will determine the extent of the rate cut. In addition, the rising unemployment rate may indicate a deterioration in the job market. If the job market is weak, the Fed will pay more attention to employment issues.

Nick Timiraos, the "Fed Mouthpiece", wrote that the July CPI data cleared the way for the Fed to start cutting interest rates at its next meeting. As the labor market has recently shown signs of potential weakness, the debate at the Fed's September meeting will focus on whether to cut interest rates by 25 basis points in a traditional way or by a more substantial 50 basis points.

Apple to allow third parties to use iPhone's payment chip

Technology stocks were mixed, with the Wind U.S. TAMAMA Technology Index down 0.04%, Tesla down 3.1%, Apple up 0.2%, Amazon down 0.08%, Netflix up 2.11%, Google down 2.31%, Facebook down 0.34%, and Microsoft up 0.69%.

Apple will allow third parties to use the iPhone's payment chip, which means that Apple is beginning to allow banks and other services to compete with the Apple Pay platform.

Apple says that starting with iOS 18.1, developers will be able to offer NFC contactless transactions through their own apps using the secure element.

Buffett's second quarter

The overall market value of holdings has dropped significantly

13F documents show that Berkshire Hathaway, owned by Buffett, increased its holdings in Occidental Petroleum and ACE Insurance in the second quarter. It reduced its holdings in Apple by 389 million shares, reducing its shareholding ratio to 30.52%. At the same time, Buffett also reduced his holdings in Chevron and T-Mobile, liquidated Snowflake and Paramount Universal, and built positions in beauty companies Ulta Beauty and Heiko Aviation.

As of the end of the second quarter, the total market value of Berkshire Hathaway's holdings fell from US$332 billion to US$280 billion.

In the second quarter, the Gates Fund sold Carvana, increased its holdings of Berkshire Hathaway Class B shares, and reduced its holdings of Microsoft. Its major holdings include Microsoft, Berkshire Hathaway Class B shares, WM, Canadian National, and Caterpillar.

Paramount Universal and Cisco announced layoffs

Paramount Universal announced that it will lay off 15% of its employees, affecting about 2,000 people. In addition, a memo sent to studio employees showed that the company will close Paramount Television Studios (PTVS), which has been in operation for 11 years, and all projects currently working with the studio will be transferred to CBS Studios.

Cisco also announced on Wednesday that it would cut 7% of its global workforce, eliminating more than 6,300 jobs. The statement said the layoffs would enable the company to "invest in key growth opportunities and improve efficiency."

Bank and energy stocks mostly rose

Airline stocks fell across the board

Bank stocks rose collectively, with JPMorgan Chase up 1.03%, Goldman Sachs up 1.31%, Citigroup up 1.96%, Morgan Stanley up 2.83%, Bank of America up 0.83% and Wells Fargo up 1.48%.

Airline stocks fell across the board, with Boeing down 0.19%, American Airlines down 0.71%, Delta Air Lines down 2.1%, Southwest Airlines down 0.17% and United Airlines down 1.66%.

Most energy stocks rose, with Exxon Mobil up 0.91%, Chevron up 0.35%, ConocoPhillips up 0.86%, Schlumberger up 0.01%, and Occidental Petroleum down 0.9%.

Popular Chinese stocks generally fell

Popular Chinese stocks generally fell, with the Nasdaq China Golden Dragon Index down 1.63%, Huya Live down 6.48%, Bilibili down 6.29%, Gaotu Group down 5.74%, 21Vianet down 5.46%, Dingdong Maicai down 5.34%, iQiyi down 5.15%, Vipshop down 4.56%, BOSS Direct down 4.21%, and Legend Biotech down 4.2%.

In terms of increase, Hillview Metal Mining rose 6.21%, ShuoDi Biopharma rose 5.59%, and ACM Semiconductor rose 1.55%.

Chinese listed new energy vehicle stocks fell across the board, with NIO down 4.24%, Xpeng Motors down 4.09% and Li Auto down 3.04%.

(Compiled by Zhao Xinyi)

Editor: Huang Mei

Review: Xu Wen

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