Good morning investors! Tariff drama continued over the weekend as countries wait for more news.
Today we cover:
What to expect this week
Tariff and courts
Berkshire Hathaway's Q4 2025 13F filing
📊 Economy and News
What to Expect This Week
Here’s what to keep an eye on this week:
Monday, Feb. 23
Factory orders (Dec).
Fed Governor Christopher Waller speaking.
Earnings: Dominion Energy (D), Oneok (OKE).
Tuesday, Feb. 24
President Donald Trump delivers State of the Union address (likely addressing tariff ruling response, housing reforms, taxes, etc.).
Data: S&P Case-Shiller home price index (Dec), wholesale inventories (Dec), consumer confidence (Feb).
Multiple Fed speakers: Governors Lisa Cook and Christopher Waller, Boston Fed's Susan Collins, Richmond Fed's Tom Barkin, Chicago Fed's Austan Goolsbee, Atlanta Fed's Raphael Bostic.
Earnings: Home Depot (HD), Bank of Nova Scotia (BNS), American Tower (AMT), Keurig Dr Pepper (KDP), Workday (WDAY), HP (HPQ).
Wednesday, Feb. 25
Earnings: Nvidia (NVDA—focus on AI chip demand, China access, Big Tech spending scrutiny), TJX (TJX), Salesforce (CRM), Lowe’s (LOW), Bank of Montreal (BMO), Synopsys (SNPS), Medline (MDLN), Snowflake (SNOW), Agilent Technologies (A), Paramount Skydance (PSKY—amid takeover drama).
Thursday, Feb. 26
Initial jobless claims (week ended Feb. 21).
Fed Vice Chair Michelle Bowman speaking.
Earnings: Royal Bank of Canada (RY), Toronto Dominion (TD), Intuit (INTU), Canadian Imperial Bank (CM), Dell (DELL), Warner Bros. Discovery (WBD), Baidu (BIDU), CoreWeave (CRWV).
Friday, Feb. 27
Producer price index (Jan).
Data: Construction spending (Dec/Nov), Chicago Business Barometer (Feb).
Saturday, Feb. 28
Earnings: Berkshire Hathaway (BRK.A/BRK.B—first report/annual letter under CEO Greg Abel).
Global hits:
10% market drop could meaningfully dent U.S. consumption.
DHS abruptly reverses suspension of TSA PreCheck.
Tech giants commit billions to Indian AI as New Delhi pushes for superpower status.
Federal automotive emissions regulations end: The Trump administration has revoked the EPA's 2009 endangerment finding, which removed the legal foundation for regulating greenhouse gas emissions from vehicles, combined with Congress zeroing out penalties for violating Corporate Average Fuel Economy (CAFE) standards via the One Big Beautiful Bill Act.
This shift is expected to gradually influence dealership inventories toward more profitable larger vehicles like full-size trucks and SUVs (with sales already up significantly year-over-year), reduced emphasis on fuel-saving technologies such as engine start-stop systems, waste heat recovery, and certain efficiency features, while potentially slowing the rollout of fully electric vehicles (EVs) amid scaled-back ambitions by some automakers following the elimination of federal EV tax credits and disappointing sales.
However, EVs and hybrids are not vanishing entirely—companies like Ford (developing next-gen efficient models) and Toyota (targeting 70% electrified sales by 2030) remain committed, and hybrids continue to appeal for their fuel economy without full charging needs.
Changes will unfold over multiple model years rather than immediately.
📈 Stocks
S&P 500 6,909.51 (+0.69%)
DJIA 49,625.97 (+0.47%)
NASDAQ 22,886.07 (+0.90%)
BRENT CRUDE 71.66 (+0.14%)
* Prices as of Feb 23rd, 12:20 AM UTC
The Supreme Court Strikes Down Trump's Major Tariffs: Key Takeaways and Aftermath
The U.S. Supreme Court delivered a landmark 6-3 ruling on February 20, 2026, declaring that President Donald Trump exceeded his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA).
The decision invalidated a significant portion of the tariffs (covering about 60% of those enacted), as IEEPA does not grant the president power to impose duties on imports.
Economic and Market Impacts Remain Limited for Now
Analysts describe the immediate macro effects as narrow, with potential benefits for tariff-sensitive sectors like retail and manufacturing. The ruling provides some modest relief on inflation pressures, as prior tariffs were estimated to add roughly 0.5 percentage points temporarily.
Growth expectations for 2026 remain solid, supported by fiscal measures and easing monetary policy, though temporary export drags could occur if importers rush shipments ahead of new changes.
Mixed Outlook on Refunds for Paid Tariffs
Estimates of potential refunds to importers vary widely, from $85 billion (Morgan Stanley) to $100-130 billion (RSM) or up to $175 billion (other models).
The Supreme Court did not resolve this issue, leaving it to lower courts, which could create a complex, prolonged process.
Trump's Defiant Response and New Tariffs
President Trump showed no signs of retreat, calling the ruling "deeply disappointing" and labeling tariffs his "most beautiful word."
Hours after the decision, he invoked Section 122 of the Trade Act of 1974 to impose a new 10% global tariff, later raising it to 15% effective immediately (the maximum allowed under this temporary authority, limited to 150 days without congressional approval).
Many existing tariffs (e.g., on steel, aluminum, and sector-specific ones) remain in place, as they were not under IEEPA.
International Reactions and Ongoing Uncertainty
Trading partners like the EU, UK, Canada, and Taiwan offered cautious welcomes but highlighted lingering "murky waters" due to Trump's other tools for tariffs. Some nations face lower rates than before, while others see increases.
India postponed trade talks with the U.S. to reassess amid the shifts, as prior negotiations for reduced reciprocal tariffs now face complications.
What Buffett bought and sold: Berkshire Hathaway's Q4 2025 13F filing shows the conglomerate trimmed its massive Apple stake for the third consecutive quarter (reducing it by about 4%, though Apple remains its largest holding at around $62 billion), initiated a new position in The New York Times worth approximately $352 million (about 5.07 million shares, marking a return to media investing after exiting the sector in 2020 due to Buffett's past skepticism about newspapers' viability, though he has praised the Times' strong digital model), and continued as a net seller of stocks overall while maintaining a highly concentrated portfolio (top holdings over 70%).
Other moves included slashing Amazon holdings by 77% and adjustments in positions like Bank of America and Chevron.
These changes occur amid Berkshire's leadership transition, with Warren Buffett stepping down as CEO at the end of 2025 (or early 2026), handing the role to Greg Abel (with Todd Combs also departing), and upcoming Q4 earnings and Abel's annual letter expected on February 28, 2026, providing further insight into the firm's strategy in a shifting tech and media landscape.
Surprising: Virginia sues Apple for negligence over the alleged distribution of child sexual abuse materials on iCloud and devices. In other news, Meta’s Zuckerberg testifies about social media’s effects on children in landmark trial. Lastly, OpenAI resets spending expectations, tells investors compute target is around $600 billion by 2030.
💵 Personal Finance
Building Financial Foundations: The Right Time to Teach Kids About Money
Financial literacy is a lifelong skill, and research shows that starting early shapes habits that last into adulthood. The question isn't if to teach kids about money, but when—and how—to make lessons age-appropriate and effective.
Early Childhood (Ages 3-7): Laying the Basics
Experts, including studies from the University of Cambridge, indicate that money habits form by age 7. Start as young as 3 with simple concepts: money has value, it's exchanged for goods, and choices matter. Use piggy banks to teach saving versus spending, count coins during play, or explain why you pay at stores. By ages 5-7, introduce allowances tied to small chores to link effort with earnings. Emphasize delayed gratification—saving for a toy teaches patience and consequences.
Middle Childhood (Ages 8-12): Building Responsibility
This stage is ideal for deeper understanding. Kids grasp budgeting, needs versus wants, and basic comparison shopping. Open a kid-friendly savings account to show interest growth. Discuss family finances lightly (without burdening them), like planning a vacation budget. Introduce giving—charity or sharing—to foster empathy. These years build decision-making skills, reducing impulsive spending later.
Teen Years (Ages 13+): Preparing for Independence
Teens handle complex topics: credit, investing, debt risks, and taxes. Encourage part-time jobs to experience real earnings. Teach banking apps, tracking expenses, and basics of stocks or retirement accounts. Discuss college costs or car ownership to connect present choices with future outcomes. Open joint accounts for supervised practice.
Why Starting Early Matters Most
Waiting until teens risks ingrained bad habits from media or peers. Early exposure normalizes money talks, reduces taboos, and builds confidence. Parents model behaviors—kids observe spending, saving, or debt—so consistency counts. Make it fun: games, apps, or real-world scenarios work better than lectures.
Practical Tips for Success
Tailor lessons to curiosity—answer questions naturally. Avoid fear-based talks; focus on empowerment. Involve kids in decisions like grocery budgeting. Consistency across ages creates compounding benefits, leading to responsible adults who avoid common pitfalls like excessive debt.
Teaching money early equips kids for life. Start small, build gradually, and watch them grow into financially savvy individuals.
💰 Be a Better Investor
"The shortest road to wealth lies in the contempt of wealth."
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