Good morning and welcome to Markets Desk, your midday read on what's moving and why.
Equities are treading water to start the session, with the S&P five hundred, the Dow, and the Nasdaq all posting fractional losses. The culprit is crude oil, where higher energy prices are pushing Treasury yields upward, squeezing the rate-sensitive parts of the market and keeping buyers cautious across the board.
Turning to Berkshire Hathaway, Geico's earnings have fallen forty-five percent, delivering a meaningful blow to the insurance segment that accounts for more than a quarter of Berkshire's total revenue. The drop raises fresh questions about underwriting discipline and whether the unit has fully absorbed the cost pressures that have plagued auto insurers industry-wide.
And speaking of Berkshire, the transition from Warren Buffett to Greg Abel is drawing scrutiny from none other than Michael Burry, who warns that Abel may lack Buffett's legendary patience. Abel has already begun deploying the company's massive cash reserves through stock purchases, buybacks, and new deals, a notably more active posture than his predecessor ever took in his final years at the helm.
That's the tape. Markets Desk, signing off the floor.
