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Weekly Recap May 8th 2021
An article by • Published May 10, 2021

Weekly Recap: May 8th 2021

For the week ending May 8th - the S&P 500 increased by 1.2%, the NASDAQ declined by 1.5% and the Dow Jones Industrial Average increased by 2.7%. The 10-year U.S. Treasury Yield Rate hovered around 1.60% through Friday, May 8th. Abel Chosen As Buffett's Successor Greg Abel, Vice Chairman of Non Insurance Operations at Berkshire Hathaway (ticker:
$BRK.B
), was implictly announced as successor of Warren Buffett as the CEO of the company during the company's
2021 Annual Shareholders Meeting
on last Saturday, May 1st. In the meeting, Charlie Munger, Executive Vice Chairman of Berkshire, on the topic of who will maintain Berkshire's culture in future (after passing of Munger and Buffett) commented - "
Greg [Abel] will keep the culture.
" Buffett later confirmed to CNBC that "the [Berkshire's board of] directors are in agreement that if something were to happen to me tonight, it would be Greg who’d take over tomorrow morning." Verizon Sells Yahoo to Apollo Verizon (ticker:
$VZ
) and private equity giant Apollo Global Management (ticker:
$APO
)
announced
that Apollo will be acquiring Verizon Media for $5 billion. Verizon Media, which consists of Verizon's media assets from Yahoo and AOL acquisitions, will be renamed as Yahoo after the acquisition is complete. Verizon will retain 10% stake in the new Yahoo and Verizon Media's current CEO, Guru Gowrappan, will lead new Yahoo as CEO. Peloton Issued Recall for Tread and Tread+ Peloton (ticker:
$PTON
)
announced
that the company halted the sale and issued a recall of its treadmill products - Tread and Tread+ due to risk of injury according to U.S. Consumer Product Safety Commission on Wednesday, May 6th. During
third quarter 2021 earnings call
, company announced - "
We estimate the revenue impact of the Tread and Tread +Plus recall will be approximately $165 million.
" Economic Updates: The U.S. Bureau of Labor Statistics released Non-farm Payroll data for April 2021 on Friday, May 7th and it showed U.S. economy added 266,000 jobs (much lower than the gain of 978,000 jobs expected by analysts). It is maybe a sign that workers are not joining the economy due to unemployment benefits and stimulus checks. The U.S. Bureau of Economic Analysis (BEA) announced U.S. Balance of Trade for March 2021 on Tuesday, May 4th. The trade deficit was (i.e. imports exceeded exports by) $74.4 billion, $3.9 billion more than $70.5 billion (revised) in February 2021, according to the report. Please feel free to share any feedback or comments about the newsletter by sending an email to support@unhedged.com