warren buffett
Warren Buffett

Warren Buffett’s great-nephew is poised to take his “blank-check” company public on Thursday.Alex Buffett Rozek, the grandson of Warren’s late sister Doris Buffett, is the co-CEO and co-chairman of Boston Omaha Corporation.Boston Omaha formed Yellowstone Acquisition Company, a “SPAC” or investment vehicle that raises money on public markets to finance a future acquisition, and hopes to raise $150 million from its market debut.Rozek and his business partner will use the funds to target a company in the homebuilding, homebuilding-related manufacturing, financial services, or commercial real estate industries.Visit Business Insider’s homepage for more stories.

Warren Buffett’s great-nephew is set to take his “blank-check” company public on Thursday, joining the likes of billionaire investors Bill Ackman and Chamath Palihapitiya in raising money to make a future, as-yet-unknown acquisition.

Alex Buffett Rozek, the grandson of Warren’s late sister Doris Buffett, is the co-chairman and co-CEO of Boston Omaha Corporation. Boston Omaha is a holding company with some similarities to Buffett’s Berkshire Hathaway conglomerate, as it has business interests across the advertising, insurance, and broadband-internet industries.

Read More: Market wizard Jim Rogers started trading with $600 and now has a reported net worth of $300 million. He shares the 8 trading rules that ensured his success.

Boston Omaha formed Yellowstone Acquisition Company — a special-purpose acquisition company or “SPAC” — and filed to take it public in early September. It initially hoped to raise $200 million, but ultimately cut its target to $150 million. Yellowstone’s shares are expected to begin trading on Thursday.

Rozek and his co-chairman and co-CEO, Adam Peterson, plan to use the listing proceeds to acquire a business in the homebuilding, homebuilding-related manufacturing, financial services, or commercial real estate industries.

The pair may be seeking to emulate Rozek’s great-uncle, who has made scores of lucrative deals during his career. Some of the Berkshire chief’s most famous ones include his bailouts of Goldman Sachs, General Electric, and Bank of America, and his $37 billion takeover of Precision Castparts.

Read More: MORGAN STANLEY: Buy these 61 stocks that will offer major earnings-driven upside following an imminent 10% market sell-off

Doris, Rozek’s grandmother, is best known for dealing with the stream of letters seeking aid from her billionaire brother. She gifted more than $180 million over the course of 25 years.

Rozek helped his grandmother with her philanthropy, and continues to chair the boards of two foundations linked to her: Learning by Giving and the Letters Foundation.

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Unemployment benefits

New US jobless claims for the week that ended Saturday totaled 898,000, the Labor Department said Thursday. The reading came in above the consensus economist estimate of 825,000, and also marks an increase from the previous week’s revised figure.
Continuing claims, which track Americans receiving unemployment benefits, fell to 10 million for the week that ended October 3. That was lower than economist forecasts.
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The number of Americans filing for unemployment insurance rose last week, indicating discouraging progress around the US labor market’s ongoing rebound.

New US weekly jobless claims totaled an unadjusted 898,000 for the week that ended Saturday, the Labor Department announced Thursday morning. That reading came in above the median economist estimate of 825,000 compiled by Bloomberg, and also reflects an increase from the prior week’s revised total.

Continuing claims, which track the aggregate total of Americans receiving unemployment benefits, slid to 10 million for the week ended October 3. The reading came in slightly below the median economist estimate of 10.6 million.

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Read more: The investment chief at a $750 million firm explains why the bull market will forge on regardless of election outcome — and shares the 12 highest-conviction stock picks that make up her market-beating strategy

Roughly 65 million unemployment-insurance filings have been made since early February, trouncing the 37 million sum seen during the 18-month Great Recession. Thursday’s report comes in well below the highs seen earlier in the pandemic but still lands above the 665,000 filings made during the Great Recession’s worst week.

The millions of Americans still unable to find work are set to endure tougher economic conditions in the near term. Democrats and Republicans remain far apart in reaching a stimulus compromise, and Wall Street economists increasingly expect new fiscal relief to arrive after the November elections.

Read more: US Investing Championship contender Trent McGraw hauled in a 104.3% return in just 8 months. He shares his two favorite trading setups that’ve led to his king-size returns.

While most polls point to a strong Biden victory in the presidential race, Senate election outcomes will “mean the difference between substantial fiscal expansion and fiscal gridlock,” Morgan Stanley said in a Wednesday note.

The lack of another expansion to unemployment benefits also leaves jobless Americans more prone to lingering debt through the pandemic. A recent study by researchers at the Federal Reserve Bank of New York found that Americans on unemployment insurance benefits used nearly half of the benefits to pay down debts. Roughly 24% of the payments were used for buying essential goods, and 23% were saved.

Read more: Morgan Stanley lays out its 5 favorite trades for investors looking to dominate a looming V-shaped recovery, even if a stimulus deal takes until 2021

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FILE PHOTO: Traders gather at the booth that trades Abbott Laboratories on the floor of the New York Stock Exchange, December 10, 2012.   REUTERS/Brendan McDermid
Traders gather at the booth that trades Abbott Laboratories on the floor of the New York Stock Exchange

Crossmark Global Investment’s chief market strategist Victoria Fernandez told CNBC’s “Trading Nation” Tuesday US lawmakers need to decide on a fiscal package, even if it is smaller in size, to save consumer spending.She said consumers have almost spent their consumer checks which is worrisome going into the holiday season. “Even if it is a smaller number, or a one-time check, it is going to give support to that consumer as we go into the last quarter of the year and that is where you need to start looking at your portfolio to balance that out a little bit,” she said. She said investors should look at a combination of growth and value stocks, as well as different segments of the financial services sector to weather uncertainty. Visit Business Insider’s homepage for more stories.

US lawmakers need to decide on a fiscal stimulus package, even if it is a smaller one, to prop up consumer spending, particularly going into the holiday shopping period, Victoria Fernandez, chief market strategist at Crossmark Global Investments told CNBC’s“Trading Nation” Tuesday 

“We really need that consumer to hang in there. For that to happen, we will need to see another round of stimulus, even if it is a smaller deal, or not the $600 we saw before,” she said. “Even if it is a smaller number, or a one-time check, it is going to give support to that consumer as we go into the last quarter of the year and that is where you need to start looking at your portfolio, to balance that out a little bit.”

With around 10 million Americans still out of work, many consumers will have long since spent their first round of stimulus checks and will likely be relying on savings at this point. 

“If you look at consumption right now it is holding up, but if you look at revolving credit as a percentage of the debt households have right now, it is very small and lower than average. Which means they are spending the cash that they saved,” Fernandez said. “They are spending that extra unemployment insurance they had, if that dries up, especially as we are going into the holiday season, we will have some concerns there.” 

Read more: Morgan Stanley lays out its 5 favorite trades for investors looking to dominate a looming V-shaped recovery, even if a stimulus deal takes until 2021

Fernandez is urging investors to look at a “barbell” strategy made up of growth and value stocks to weather the stalemate in Washington over a new set of measures to protect the economy and individual households.

“We think you need to build that barbell strategy and have some of those tech names that are in there, but also have some other names like Walmart and Amazon that would benefit from people choosing to do shopping a little bit differently,” she said.

She said investors should look beyond banks and explore other segments of the financial sectors such as credit card companies such as Visa and Mastercard. 

“Banks are not an area that this time which is the strongest bet. We do need some exposure to other areas, like credit cards, Fernandez said. “You can have exposure to finance without necessarily being in the banks, with the yield curve not as steep as we would like at this point.” 

The yield curve, or difference between yields on shorter-dated government bonds and longer-dated ones, which are used to price products like mortgages, has been fairly flat, as interest rates remain low, meaning banks eke out little profit from their lending activities.

Fernandez said though she expects a deal to be approved before the US election on November 3. 

“I do think before the election we will get a stimulus deal,” she said. “Both sides want to be able to be seen as supporting the consumer and supporting those industries that have been hardest hit.” 

Read more: A fund manager beating 90% of his rivals told us why he actively avoids companies with giant profit margins — and shares 5 stocks he thinks will keep winning for years

Democrats and Republicans have been gridlocked over a deal since July. Proposals by the Democrats are unlikely to make it through the Republican-controled Senate on the grounds that they are too generous, and measures put forward by President Donald Trump’s administration have been rejected by the opposition for being inadequate.

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smiling stock exchange trader happy

US stocks rose on Monday as Democrats and Republicans inched closer to a stimulus compromise.Mega-cap companies including Apple and Amazon led indexes higher as investors rushed to the growth favorites.President Trump urged Republicans to speed up Amy Coney Barrett’s confirmation to the Supreme Court so that they can pass a new stimulus bill before Election Day.Investors also prepared for earnings season. Citigroup and JPMorgan are set to kick off reporting on Tuesday.Oil futures sank as operations temporarily halted by Hurricane Delta resumed. West Texas Intermediate crude fell as much as 3.8%, to $39.04 per barrel.Watch major indexes update live here.

US equities extended their rally into a new week as investors pushed tech giants higher.

Apple surged ahead of a Tuesday event widely expected to unveil the next generation of iPhones. Amazon climbed as it kicked off its Prime Day sale event. Other mega-caps including Alphabet and Microsoft also drove indexes’ gains.

Investors hoping for fresh government aid remained hopeful on the prospects of a near-term bill. The Trump administration raised its proposal to $1.8 trillion from $1.6 trillion on Friday, closing the gap with House Democrats’ $2.2 trillion bill.

The measure includes another round of stimulus checks and funding for the Paycheck Protection Program, but falls short of Democrats’ allocations for expanded unemployment benefits and state and local governments. 

Here’s where US indexes stood at the 4 p.m. ET market close on Monday:

S&P 500: 3,534.22, up 1.6%Dow Jones industrial average: 28,837.52, up 0.9% (251 points)Nasdaq composite: 11,876.26, up 2.6%

Read more: GOLDMAN SACHS: Buy these 15 stocks set to deliver the strongest possible profit growth and subsequent returns through year-end

Still, House Speaker Nancy Pelosi described the administration’s new offer as “one step forward, two steps back.” Pelosi and Treasury Secretary Steven Mnuchin are expected to continue negotiations throughout the week, though the odds of passing a bill before the presidential election are dwindling.

Bringing the measure to a vote in the Senate would also prove difficult, as Republican lawmakers have shifted their focus to confirming Judge Amy Coney Barrett to the Supreme Court. Four days of congressional confirmation hearings begin Monday morning.

President Donald Trump urged Republicans to speed up Barrett’s confirmation process so they can pass new fiscal relief earlier.

“Personally, I would pull back, approve, and go for STIMULUS for the people!!” he said in a Monday morning tweet. To be sure, Senate Republicans have balked at the White House’s latest offer.

Bank earnings are set to drive the market’s trajectory through the rest of the week. Citigroup and JPMorgan kick off third-quarter reporting on Tuesday, followed by Goldman Sachs and Bank of America on Wednesday.

Read more: A $2 billion fund manager says market volatility is here to stay for the long-term. He breaks down his best recommendations for the new normal — including 4 of his favorite stocks.

“The stimulus stalemate still looms large, though it failed to derail the market last week. And with high expectations for big bank earnings kicking off the season, we could get a clearer picture into just how far we’ve come in terms of economic recovery,” said Chris Larkin, the managing director of trading and investment product at E-Trade.

Communications services and consumer discretionary stocks followed tech’s lead in the market upswing. Materials and energy stocks underperformed.

Monday’s uptick followed the market’s best week since August. Renewed stimulus hopes brought investors back to stocks, and economic indicators including weekly jobless claims showed continued — albeit slowing — improvement.

Read more: ‘The largest financial crisis in history’: A 47-year market vet says the COVID-19 crash was merely a ‘fake-out sell-off’ — and warns of an 80% stock plunge fraught with bank failures and bankruptcies

Twilio shares leaped after the firm agreed to buy the data platform Segment for $3.2 billion. The acquisition is expected to close before the end of the year.

Department-store chain Dillard spiked higher after Berkshire Hathaway investment manager Ted Weschler unveiled a 6% stake in the company.

Spot gold fell as much as 0.6%, to $1,918.44 per ounce, before paring losses. The US dollar gained slightly against a basket of global peers.

Oil traded lower as operations temporarily constrained by Hurricane Delta resumed. West Texas Intermediate crude fell as much as 3.8%, to $39.04 per barrel. Brent crude, oil’s international standard, sank 3.5%, to $41.36 per barrel, at intraday lows.

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Traders gather at the post that trades Pfizer's stock on the floor of the New York Stock Exchange October 29, 2015.   REUTERS/Brendan McDermid

Global stocks rose on Monday as investors held onto hopes for a prompt deal on a new round of US fiscal stimulus, boosted by the White House’s change in position over the weekend.US stock futures rose as much as 1%, even after House Speaker Nancy Pelosi rejected the Trump administration’s latest proposal on Sunday.In Asia, China stocks rose to a two-year peak, driven by a new central bank policy that makes it easier to sell the yuan.The FTSE 100 edged slightly lower ahead of Prime Minister Boris Johnson’s expected announcements on stricter COVID-19 restrictions across the country.Visit Business Insider’s homepage for more stories.

Global stocks rose on Monday as investors largely pinned hopes on a new US fiscal stimulus deal to get across the line. 

US stock futures rose as much as 1% even after House Speaker Nancy Pelosi rejected the Trump administration’s latest proposal, or a stripped-down version of the coronavirus relief bill, calling it “grossly inadequate” over the weekend. The dollar index, meanwhile, fell 0.5%.

President Donald Trump’s team proposed a $1.8 trillion stimulus package, which includes a $400 boost in weekly unemployment insurance, $1,200 stimulus checks for US adults, and $1,000 checks for every child. 

Read more: GOLDMAN SACHS: Buy these 15 stocks set to deliver the strongest possible profit growth and subsequent returns through year-end

The MSCI World Index rose 0.7% as global markets rotate into a risk-seeking position and investor hopes persist that a fiscal stimulus package is on the horizon. But House Democrats appear to be sticking to their original $2.2 trillion plan

“Even if the White House capitulates, getting that number through the Senate will be challenging,” said Jeffrey Halley, a senior market analyst at OANDA. “With markets now totally ignoring the possibility of a fiscal stimulus package not happening and piling into the ‘buy everything’ trade, the correction if negotiations fall apart could be something to behold.”

Nonetheless, the more positive mood carried over to the European region, where the Euro Stoxx 50 index of eurozone blue-chip shares rose 0.3% and Germany’s DAX rose 0.2%.

London’s FTSE 100 fell 0.2%, ahead of a slew of new  COVID-19 restrictions across the country from Conservative Prime Minister Boris Johnson following an explosion in new cases. Britain already has the highest death rate in Europe.

In Asia, China’s benchmark index jumped to a two-year peak, after the People’s Bank of China unveiled a new policy that makes it easier to short the yuan, which was down almost 1% against the dollar.

The central bank no longer requires lenders to hold reserves when buying foreign currency forward contracts. The yuan’s appreciation is likely to resume after these measures run their course, OANDA’S Halley said.

China’s Shanghai Composite index rose 2.6%, and Hong Kong’s Hang Seng rose 2.2%, while a stronger yen knocked 0.3% off Japan’s Nikkei.

Gold rose 0.2% to $1,929 an ounce, lifted by a weaker dollar. Gold’s firmness points to “positive technical developments that should signal further gains in the week ahead,” Halley said.

Read more: SPACs have generated a $39 billion frenzy in the US this year. The executive behind their first ETF explains how retail investors can use them to level the playing field with Wall Street titans like Warren Buffett.

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