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By Connor Smith | Friday, August 15 Buffett Bump. The Dow Jones Industrial Average finally topped its Dec. 4 intraday high, but the blue-chip index once again failed to mark a record close. The Dow ended the day up 35 points, or 0.1% -- just 68 points from record territory. The S&P 500 fell 0.3%. The Nasdaq Composite dropped 0.4%. The Dow would have been down with the rest of the big indexes if not for a major lift from one of its biggest detractors this year: UnitedHealth Group. The health insurance stock has shaved 1,240 points off the Dow this year alone, but Friday the stock single-handedly added nearly 200 points to the Dow as a majority of stocks in the blue-chip index fell. UnitedHealth surged 12% on the day to mark its best daily performance since March 24, 2020. The rally came after Warren Buffett's Berkshire Hathaway disclosed in a regulatory filing that it bought five million shares, or $1.6 billion, of UnitedHealth stock during the second quarter. Buffett also disclosed stakes in Lennar, D.R. Horton, and Nucor, though purchases began in the first quarter for those, Barron's associate editor Andrew Bary reports:
Shares of Apple and Bank of America, in which Berkshire trimmed positions, dropped on Friday. The rest of the market was taking stock of the latest earnings reports, as well as looking ahead to looming sector tariffs. The biggest event of next week, though, will be Federal Reserve Chair Jerome Powell's annual speech at Jackson Hole. "I don’t envy Chair Powell," David Donabedian, co-chief investment officer of CIBC Private Wealth, told me. Donabedian notes that some of the recent economic data made the case for rate cuts, but inflation has remained stubborn and Friday's retail sales report was "solid' and included upward revisions to prior months. "Markets still place a 90% chance on a rate cut at the September meeting," Donabedian said. "That seems very high, especially since there is another jobs report and several pieces of inflation data before the meeting. For those expecting a foreshadowing of a rate cut at Jackson Hole, they may be disappointed. I expect him to repeat the 'data dependent' mantra over and over." For more on Powell's big speech, and what it could mean for his legacy and the central bank's independence, read Barron's latest cover story here. Watch our TV show on Fox Business Saturdays and Sundays at 9:30 a.m. and 10:30 a.m. ET. This week, insights from NewEdge Wealth's Cameron Dawson. Plus, are we witnessing a market melt-up or a rational rally? 
DJIA: +0.08% to 44,946.12 The Hot Stock: UnitedHealth Group +12.0% Best Sector: Healthcare +1.7% 
This Weekend's Magazine
The CalendarThe main event next week will be Fed Chair Jerome Powell’s speech from Jackson Hole, Wyo. Powell has been under attack from the White House and its allies, with Treasury Secretary Scott Bessent suggesting this past week that the Fed should cut interest rates by half a percentage point at its September meeting. Whether the Fed will cut at all might be signaled during Powell’s Jackson Hole speech. Traders have priced in a greater than 90% chance of a quarter point cut. Many retailers have a fiscal year that ends in January, giving them a late reporting window in earnings season. Next week sees some of the most important retailers release results, offering insight into the state of the American consumer and any potential impact from tariffs. Home Depot releases earnings on Tuesday, followed by Lowe’s, Target and TJX Cos. on Wednesday. Industry behemoth Walmart announces results on Thursday along with Ross Stores. Fresh data on the housing market, which has been in the doldrums, will come with the release of housing starts from the Census Bureau on Tuesday and existing-home sales from the National Association of Realtors on Thursday. Also released on Thursday will be the Manufacturing and Services Purchasing Managers’ Indexes from S&P Global. --Dan Lam 
What We're Reading Today
Join Barron's Live at noon ET on Monday. Barron's Megan Leonhardt talks with David Wessel, director of the Hutchins Center on Fiscal & Monetary Policy at the Brookings Institution, about what investors can expect from next week's annual gathering at Jackson Hole and what's ahead for the central bank as Chair Jerome Powell's term comes to a close. Barron's Live features timely and actionable insights for investors. We give you behind-the-scenes conversations with the newsroom, connecting you with our editors and reporters covering the markets, the economy, and more. Sign up here.
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