Wall Street Today | Warren Buffett Is Buying Treasuries Regardless of US Downgrade by Fitch

CEOs across the country are opting to reinvest more of their profits in expansion projects rather than handing the money back to shareholders.

With tightening credit muting share repurchases, and the siren song of artificial intelligence blaring everywhere, outlays for investment on plants and technology have blossomed. The median company pushed up capital expenditures by 15% in the period, with three-quarters announcing programs that topped analyst estimates in July, data from Bank of America shows.

Bank of America Chief Executive Officer Brian Moynihan said the firm reversed its prediction for a recession in coming months because of strength in the jobs market and robust consumer spending.

Economists at Bank of America earlier this week scrapped their forecast for a recession in the US, becoming the first large Wall Street bank to officially reverse its call amid growing optimism about the economic outlook.

Berkshire Hathaway CEO Warren Buffett says he’s not concerned about the Fitch downgrade of the U.S. government’s credit rating, saying his company continues to buy $10 billion of Treasury bills each week.

“There are some things that people shouldn’t worry about and this is one,” Buffett told CNBC, though he did add that Fitch raised some valid points.

“Berkshire bought $10 billion in US Treasuries last Monday. We bought $10 billion in Treasuries this Monday. And the only question for next Monday is whether we will buy $10 billion in 3-month or 6-month” T-bills, Buffett said on CNBC. “There are some things people shouldn’t worry about,” he said. “This is one.”

Revenue in the current quarter will be $138 billion to $143 billion, compared with analysts’ average projection of $138.3 billion. Operating income will range from $5.5 billion to $8.5 billion. Analysts, on average, estimated $5.41 billion.

The tech giant booked fiscal third-quarter net income of $19.88 billion, or $1.26 a share, compared with $19.44 billion, or $1.20 a share, in the year-prior period. Apple beat the FactSet consensus, which was for $1.20 in earnings per share.

Revenue fell to $81.80 billion from $82.96 billion and matched the FactSet consensus.

The San Francisco-based company narrowed its loss to $125.8 million, or 20 cents a share, for the second quarter ended June 30, from $209.3 million, or 36 cents a share, a year earlier. Adjusted earnings were 39 cents a share, above analysts' estimates of 36 cents.

Longtime Microsoft executive Brad Smith dumped nearly $17 million worth of Microsoft shares earlier this week, new disclosures show.

Smith, who serves as Microsoft's vice chair and president, sold 50,000 shares of the company on Tuesday, according to a filing with the Securities and Exchange Commission made public Wednesday. He sold at prices ranging from $336.35 to $338.04.