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Stocks rise but move toward weekly losses – Sen. Warren demands FTX turn over trove of records – FTX purchased Bahamas homes with corporate funds – US housing prices could plunge 20%, Fed warns – Latest Buffett market moves
Stock futures pointed to modest gains on Friday but were heading toward weekly losses.
At Friday’s open, the S&P 500 gained 0.6%, while the Dow Jones Industrial Average picked up 135 points, or 0.4%, while the technology-heavy NASDAQ composite rose 0.8%.
The uptick is being credited to Goldman Sachs Group lifting its forecast for the Federal Reserve’s terminal rate to a range of 5% to 5.25%, foreseeing a 25-basis-point hike in May and continuing increases of that size in February and March, with a half a percentage point bump in December.
The benchmark 10-year Treasury was at 3.8%, while the two-year yield inched towards 4.5%.
Shares of Ross stores soared 18 percent after beating earnings forecasts, with GAP doing the same, with shares up eight percent in extended trading, Yahoo reported.
Senators Elizabeth Warren (D-MA) and Dick Durbin (D-IL) are demanding that FTX and its founder Sam Bankman-Fried hand over a trove of documents. In a letter, first obtained by CNN, the lawmakers called for “complete and transparent accounting” of the business practices and financial activities that led up to the bankruptcy and aftermath that has thrown the crypto industry into chaos and is poised to wipe out billions of dollars in customer funds.
“New revelations continue to shed light on what now appears to be an appalling case of greed and deception,” the senators wrote in the letter sent to Bankman-Fried and new FTX CEO John J. Ray III.
A new filing has revealed that FTX used corporate funds to purchase homes in the Bahamas and “personal items” in the name of employees and advisors of the company, according to a bankruptcy declaration, CNBC reported, adding that the source of the corporate funds was not immediately clear. New FTX CEO John Ray III noted that “certain real estate” was recorded as being directly owned in the personal name of certain employees. Ray added that FTX under Bankman-Fried lacked “corporate controls,” that accounting was done in a manner not “appropriate for a business enterprise,” and was absent of “trustworthy financial information.”
Research from the Federal Reserve Bank of Dallas said home prices in the US could plunge as much as twenty percent due to the sharp rise in mortgage rates in 2022. Rising interest rates will not only drastically increase homeownership costs but will also “boost the odds of a severe house price correction,” CBS reported.
In the third quarter, Warren Buffett, the Oracle of Omaha, made some major stock moves through his company Berkshire Hathaway Inc. Here are ten of the biggest changes Buffett made to Berkshire’s portfolio in the third quarter, US News reported.
Bought: Taiwan Semiconductor Manufacturing Co. Ltd. (TSM); Occidental Petroleum Corp. (OXY); Chevron Corp. (CVX); Louisiana-Pacific Corp. (LPX); Paramount Global (PARA); Jefferies Financial Group Inc. (JEF).
Sold: U.S. Bancorp (USB); Activision Blizzard Inc. (ATVI); Bank of New York Mellon Corp. (BK); Store Capital Corp. (STOR).
