CNBC Business News Update - Market Midday: Stocks Mixed, A Risk Off For '26 Call, Buffet Bullish On Berkshire 1/2/26

Episode Date: January 2, 2026

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I'm Jessica Eddinger, CNBC, chip stocks higher to start 2026 trading today. Major averages mixed this afternoon. The Dow is still in the green up 77 points. Caterpillar shares leading it higher, they're up 3.5%. The S&P 500 index down 6 points. The NASDAQ down 54 points this afternoon. Shears of Nvidia are up 1.5%. Companies whose shares have hit fresh all-time high.

today include Alta Beauty, plus Micron, Terradine, Lamb Research, and Jebel. We do start 2026 with a high valuation. We also start it, though, with companies like the Magnificent 7 plus put in Broadcom and expected to show 24% earnings growth this year. So, you know, a bigger percentage of the economy and the market in high growing tech sector. So is that justified or not? I think that's going to be one of the biggest questions. No doubt the bar is higher. That's CNBC's Sarah Eisen. Some investors say this will not be as strong a year for stocks. I think you should take risk off the table. We've had three fabulous years. That doesn't mean I'm super bearish. It doesn't mean, I think a major bear market's coming. But if you've had a

great year, take some risk off the table, whatever form that's going to come to you in. Maybe you want to take a little bit out and switch strategies and go from super high growth and what's worked into something that's just a better valuation. Maybe you want to put more into international. Maybe you do want to add to fixed income, but I think that the playbook for this year is going to is going to be different and everyone seems to just be riding the same old train. Gilman Hills Jenny Harrington on CNBC. R.H. and Wayfair shares are higher. The Trump administration is rolling back more tariffs, delaying the increase on imported upholstered furniture, kitchen cabinets and vanities, and even pasta, as voters scream about affordability. Tesla with a rough fourth quarter for vehicle sales after the Trump administration ended the tax break for buying an electric vehicle, a 16% drop over the same quarter a year ago. Once you had the election, it was pretty clear that the Trump administration was going to take away EV incentives, which they did at the end of the third quarter. That's when everybody started dialing back their expectations for Tesla.

the number 418,227 vehicles delivered by Tesla in the fourth quarter. And always what people are interested in is, when will they hear from Elon Musk? It will be on January 28th. After the bell, that's when the company will be reporting its Q4 results. CNBC's Phil LeBoe. Warren Buffett tells CNBC that Berkshire Hathaway has the best odds of any company for lasting a century as he steps down at the age of 95. Warren Buffett has officially stepped down as CEO of Berkshire Hathaway. That's the company he built over the last 60 years.

He's handed over the reins to Greg Abel. He's still going to be there as chairman, but what he's done over the last 60 years in the investing world is unrivaled. If you just look back over the last 20 years, you'll see Berkshire B shares up by 755% versus gains of 448% for the S&P 500. But if you were looking over the last 60 years, I mean, the statistic that really jumped out of me was that stock could drop 99.2% and he still would have outperformed the S&P 500 over the last 60 years.

That's CNBC's Becky Quick. Sacks Group missed a debt payment. The Wall Street Journal says the retailer, which recently bought Neiman Marcus, is set to file for bankruptcy protection. Jessica Eddinger, CNBC. CNBC, live ambitiously.