The stock market posted a slight loss through Monday afternoon. Warren Buffett Berkshire Hathaway (BRKB) announced first-quarter results at its annual shareholder meeting on Saturday. Bank stocks got a boost.
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According to ReutersKathy Seifert, vice president at CFRA Research, issued a dovish note after the Berkshire meeting, warning Buffett against managing his massive efforts. apple (AAPL) exposure wisely.
It warned that “portfolio management practices would certainly suggest concentration risk with a lot of Apple in that portfolio.”
Recent reports indicate that Apple makes up a staggering 42% of Berkshire’s total portfolio.
By the numbers
The Dow Jones Industrial Average fell 0.2% while the Nasdaq lost less than 0.1%. The S&P 500 is relatively unchanged. The huge Russell 2000 matched, dropping 0.2%.
Trading volume on the New York Stock Exchange and Nasdaq shrank compared to the same time on Friday.
Nasdaq 100 Tracking Index Invesco QQQ Trust ETF (QQQ) was relatively flat, while the Innovator IBD 50 ETF (fifty) increased by 0.1%.
Crude Oil rose 2.5% to $73.13 a barrel. Gold futures rose 0.5% and traded at $2,030.
Bitcoin fell 6.2% to $28,000. Coinbase cryptocurrency exchange (currency) sympathized with cryptocurrency, losing 2.4%.
The 10-year US Treasury yield added 5 basis points, to 3.5%. the CME FedWatch tool Appears almost 90% odds of no rate hike at the Fed’s June meeting.
European stocks were mixed, with the German DAX down 0.1% and the Paris CAC up 0.2%. London’s FTSE posted the biggest gain, up 1.0% in afternoon trade.
Stock Market: Warren Buffett’s Weekend
Warren Buffett Berkshire Hathaway (BRKB) jumped 1.4% after first-quarter figures released at the annual meeting on Saturday. The holding company reported an operating profit of $8.065 billion, an increase of 12.6% compared to the previous year.
The company has reported more than $130 billion in cash and Treasury bills on its account balance sheet. Her insurance writing earnings rose to $911 million from $167 million the previous year.
He has quashed rumors that Berkshire is looking to take over Occidental Petroleum (OXY), saying “we will not buy control”.
Berkshire owns more than 20% of the shares of OXY. OXY shares fell 1.8%.
Buffett said the commercial real estate market is starting to see the effects of higher borrowing rates. He discussed the banking crisis, saying he was cautious about the sector but stressed that customers’ deposits were safe.
The railroad and energy companies of Burlington Northern Santa Fe (BNSF) in Berkshire reported a decline in profits.
BKRB shares are in a long base with handle with 331.94 buy points on the weekly chart. A narrowing three-week pattern also formed in the handle, according to MarketSmith pattern recognition.
Berkshire Holding Paramount Global (Para) changed direction, up 0.1% after last week’s sell-off, after a worse-than-expected first-quarter earnings announcement. Stocks are below the 50 day line, a red flag.
The media and streaming service provider have significantly cut their profits. Buffett said it’s never a good thing when a company cuts its dividend.
Major economic data released this week
Investors await mid-week inflation reports and the US debt ceiling meeting on Tuesday.
Look for the April Consumer Price Index (CPI) on Wednesday at 8:30 a.m. ET. Producer Price Index (PPI) Thursday.
Econoday Estimates point to a 0.4% increase in the April CPI and core CPI, with the annualized figures of 5% still ok compared to March. The PPI for April is expected to have increased by 0.3% versus a decline of 0.5% in March. Annual increases are expected at 2.5%, down from 2.7% in March.
On Tuesday, President Joe Biden will meet with members of Congress on the debt ceiling agreement. On Sunday, Secretary of State Janet Yellen said there are no “good options” to avoid dire consequences if Congress fails to raise or suspend the country’s debt ceiling, according to the Barron.
The United States hit the debt ceiling of $31.4 trillion in January, and has been maneuvering to pay down its obligations. Yellen warned last week that she could run out of money by June 1.
Stock Market: Regional banks get a boost
backquest (PACW) rose 5.6% on heavy trading volumes, despite the dividend cut. Peer regional bank Western alliance (WAL) reversed course and added 1.7%.
Cloud security company Zscaler (ZS) increased by more than 21% after higher-than-expected quarterly sales. It also raised revenue guidance for the full year.
Management expects $415 to $419 million for the current quarter, compared to $286.8 million last year. Analysts expect earnings per share to grow by 121% this year.
six flags (six) rose more than 21% on heavy volume, after the theme park company reported better-than-expected first-quarter sales. This move brought stocks back above the 50-day line.
Tyson Foods (TSN) fell more than 15% on heavy volume, after reporting a surprise loss and lower-than-expected sales in the quarter ending in March.
Other stock market drivers: Cruise Line stock is in the buy zone
Dow Jones component Walt Disney (dis) down 3.1% before Wednesday’s earnings report. Morgan Stanley raised its price target to 120 from 115.
Ingredient IBD 50 Royal Caribbean (RCL) rose by 2.7% and is in a 5% overbought area extending to 80.22, after reaching 76.40 overbought points for the base of the cup. The RSI line has reached a 52-week high, as indicated by the blue dot on the MarketSmith.
The cruise line reported better-than-expected Q1 sales and a smaller-than-expected loss on Thursday.
peloton (PTON) rose 7% after BMO Capital upgraded the interactive fitness platform stock to an underperforming market, with a price target of 9.50.
Also in IBD 50, Cyber Security Provider fortinet (FTNT) rose 2.5% after BofA Securities upgraded the stock to buy from neutral and raised its price target to 75 from 66.
IBD 50 stock Shockwave Medical (SWAV) decreased by 4% in heavy volume, on the back of talks between the manufacturer of the medial organ and Boston Scientific (BSX) has deteriorated. BSX gained 3.4% on the news.
Uber Technologies (Uber) rose by 2.3% and is in a 5% buy zone and reached 39.56, having reached 37.68 buy points for the base of the cup last week. The ride-sharing operator beat last week’s first quarter estimates.
American Airlines (AAL) rose 4.2% after JPMorgan Chase raised the airline’s stock to overweight from neutral, raising its price target to 29 from 26.
Catal (CTLT) fell more than 26% in huge trading volumes after postponing third quarter earnings results. Catalent is the biggest loser in the S&P 500 today.
Follow Kimberley Koenig for more stock news on Twitter @employee.
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