The S&P 500 closed at a record 7,609.78 on Tuesday, gaining 0.13% and extending its nine-week rally driven by AI strength. However, Polymarket traders predict a weaker open on Wednesday with 47% probability of a higher open. Geopolitical tensions from U.S.-Iran military actions and upcoming economic data (ADP payrolls, durable goods) will influence market direction. S&P 500 futures were trading slightly lower early Wednesday, down 0.10%.

Greg Abel, Berkshire Hathaway's new CEO, sold the company's entire 5.1 million-share stake in UnitedHealth Group in Q1 2026 as part of portfolio spring cleaning. While UnitedHealth shares have rallied over 40% since the sale, the author argues Abel made the right call given the stock's valuation risks and the company's ongoing turnaround challenges. Berkshire also exited positions in Amazon, Domino's, Mastercard, and Visa while increasing stakes in Alphabet and adding new positions in Delta Airlines and Macy's.

Greg Abel, the new CEO of Berkshire Hathaway, has opened a position in Macy's as part of his first 13F filing. The department store is trading at a cheap valuation of 8x trailing earnings with a 3.58% dividend yield, and is executing a turnaround strategy under new CEO Tony Springs that focuses on high-performing locations and omnichannel retail. However, Wall Street expects earnings to decline this year, raising concerns about whether the stock is a value trap.

Berkshire Hathaway's new CEO Greg Abel made significant portfolio changes in Q1, reducing holdings from 39 to 26 stocks and dumping positions in Amazon, Visa, and Mastercard. Abel's largest new investments were in Delta Air Lines ($2.6B) and Macy's ($55M)—both industries where Buffett has acknowledged past mistakes. However, Abel's biggest move was a $10B increase in Alphabet, which the author views favorably. The analyst expresses concern about most of Abel's moves outside of Alphabet.

Berkshire Hathaway completely exited its Amazon position in Q1 2026, selling its remaining shares after holding 10 million shares in September 2025. The company simultaneously initiated a new position in Macy's, purchasing nearly 1.7 million shares valued at $30.1 million. The move reflects a shift toward Macy's attractive valuation and growth potential despite broader economic concerns.

Dillard's reported strong Q1 earnings of $16.04 per share, beating expectations by $5.91, but the rally quickly faded as investors realized $5.10 per share came from a litigation settlement. The stock surged to $593 in premarket trading but ended only 0.4% higher as investors reassessed valuations after a 270% five-year run. Wall Street remains cautious with two Sell and three Hold ratings, citing concerns about underlying growth and forward guidance.

Markets faced mixed signals as geopolitical tensions eased on Iran sanctions reports, causing oil prices to reverse sharply lower. Bond yields surged globally on inflation concerns, with the 10-year Treasury hitting 4.631%. Nvidia's Wednesday earnings are positioned as the most critical event for the AI capital expenditure cycle, with options pricing a potential 7% move. Key corporate actions include NextEra-Dominion merger announcement, Berkshire Hathaway's portfolio restructuring under new CEO Abel, and Regeneron's failed Phase 3 trial.

Under new CEO Greg Abel, Berkshire Hathaway halted its multi-quarter Apple selling trend and more than tripled its Alphabet stake in Q1 2026, signaling a shift toward technology investments. Apple reported strong fundamentals with 17% revenue growth and 22% EPS growth, though rising memory costs present a near-term risk.

Greg Abel, who took over as CEO of Berkshire Hathaway on December 31, executed a major portfolio overhaul in Q1 2026. He completely exited 16 positions including Amazon, Domino's Pizza, Visa, Mastercard, and UnitedHealth Group, while more than tripling Berkshire's stake in Alphabet to approximately $23 billion. The moves signal a shift toward tech investments and fundamental bargains, marking a departure from Warren Buffett's traditional investment approach.

Macy's delivered its fourth consecutive earnings beat with Q4 2025 adjusted EPS of $1.67 (vs. $1.55 expected) and revenue of $7.92B (vs. $7.48B expected). However, the stock fell sharply as the company issued conservative full-year guidance citing macroeconomic and geopolitical uncertainties affecting consumer spending. Analysts lowered price targets, with the consensus rating now 'Reduce' and average 12-month target of $18.90, implying less than 5% upside.

Major U.S. stock indexes fell on March 18, 2026, as the Federal Reserve held interest rates steady and inflation concerns mounted. The S&P 500 dropped 1.36%, the Nasdaq fell 1.46%, and the Dow declined 1.63%. Rising crude oil prices and higher-than-expected Producer Price Index data pressured markets, with oil reaching $110 per barrel and gasoline hitting $3.84 per gallon.

Macy's reported better-than-expected Q4 results with adjusted earnings of $1.67 beating consensus of $1.53. Bloomingdale's achieved record holiday performance with comparable sales up 9.9%. However, gross margins declined 50 basis points due to approximately 60 basis point tariff impact. The company issued cautious 2026 guidance expecting adjusted earnings of $1.90-$2.10 per share (below consensus of $2.17) and flagged macroeconomic and geopolitical risks.