[ad_1]
The stock market posted a tiny loss into Monday’s noon hour. Warren Buffett’s Berkshire Hathaway (BRKB) reported first-quarter results at its annual shareholder meeting Saturday. Bank stocks got a boost.
X
According to Reuters, vice president at CFRA Research Cathy Seifert issued a pessimistic note after the Berkshire meeting, cautioning Buffett to manage his enormous Apple (AAPL) exposure wisely.
She warned that “portfolio management practices would suggest there is definitely concentration risk with having so much Apple in that portfolio.”
Apple makes up an astounding 42% of Berkshire’s total portfolio, according to recent reports.
By The Numbers
The Dow Jones Industrial Average inched down 0.2% while the Nasdaq lost less than 0.1%. The S&P 500 was relatively unchanged. The Russell 2000 matched megacaps, falling 0.2%.
NYSE and Nasdaq volume shrank compared with the same time on Friday.
The Nasdaq 100-tracking Invesco QQQ Trust ETF (QQQ) was relatively flat, while the Innovator IBD 50 ETF (FFTY) edged higher 0.1%.
Crude oil gained 2.5% to $73.13 per barrel. Gold futures added 0.5% and traded at the $2,030 level.
Bitcoin plunged 6.2% to $28,000. Cryptocurrency exchange Coinbase (COIN) dropped in sympathy with crypto, losing 2.4%.
The 10-year U.S. Treasury yield added 5 basis points to 3.5%. The CME FedWatch tool shows nearly 90% odds for no rate hike at the June Fed meeting.
European stocks were mixed, with the German DAX pulling back 0.1% and Paris CAC adding 0.2%. The London FTSE rallied the most, gaining 1.0% in afternoon trading.
Stock Market: Warren Buffett Weekend
Warren Buffett’s Berkshire Hathaway (BRKB) jumped 1.4% following Q1 numbers released at the annual meeting on Saturday. The holding company posted operating earnings of $8.065 billion, up 12.6% vs. year earlier.
The company reported over $130 billion in cash and Treasury bills on its balance sheet. Its insurance writing profits soared to $911 million from $167 million in the prior year.
He squashed the rumor that Berkshire is looking to take over Occidental Petroleum (OXY), saying “We’re not going to buy control.”
Berkshire owns over 20% of OXY shares. Shares of OXY dipped 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 is cautious about the sector but stressed that customer deposits are safe.
Its Burlington Northern Santa Fe (BNSF) railroad and energy businesses posted earnings drops.
BKRB shares are in a long cup-with-handle base with a 331.94 buy point on the weekly chart. A three-week tight 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, following a worse-than-expected Q1 earnings release. Shares are below the 50-day line, a red flag.
The media and streaming provider drastically cut its dividend. Buffett said it’s never a good thing when a company slashes its dividend.
Key Economic Data Out This Week
Investors await inflation reports midweek and the U.S. debt ceiling meeting on Tuesday.
Look for the April Consumer Price Index (CPI) Wednesday at 8:30 a.m. ET. and the Producer Price Index (PPI) Thursday.
Econoday estimates a 0.4% increase in April CPI and core CPI, with the 5% year-over-year numbers holding pat over March. April PPI is expected to increase 0.3% vs. a decrease of 0.5% in March. The year-over-year increases are projected at 2.5%, down from 2.7% in March.
President Joe Biden meets Tuesday with Congressional members on a debt ceiling agreement. Secretary of State Janet Yellen said on Sunday, there are “no good options” for avoiding the dire consequences if Congress fails to raise or suspend the nation’s debt ceiling, according to Barron’s.
The U.S. hit the $31.4 trillion debt ceiling in January, and has been maneuvering to pay its obligations. It could run out of money by June 1, Yellen warned last week.
Stock Market: Regional Banks Get A Lift
PacWest (PACW) rallied 5.6% in heavy volume, despite cutting its dividend. Peer regional bank Western Alliance (WAL) reversed course and added 1.7%.
Cloud security company Zscaler (ZS) popped over 21% after higher-than-forecast quarterly sales. It also raised full-year revenue guidance.
Management expects $415 to $419 million for the quarter, compared to last year’s $286.8 million. Analysts project 121% EPS growth this year.
Six Flags (SIX) spiked over 21% in heavy volume, after the theme park operator reported better-than-expected Q1 sales. The move sent shares back above the 50-day line.
Tyson Foods (TSN) fell over 15% in heavy volume, after reporting a surprise loss and lower-than-expected sales in its March-ended quarter.
Other Stock Market Movers: Cruise Line Stock In Buy Zone
Dow Jones component Walt Disney (DIS) gained 3.1% ahead of Wednesday’s earnings report. Morgan Stanley raised its price target to 120 from 115.
IBD 50 component Royal Caribbean (RCL) rose 2.7% and is in the 5% buy zone stretching to 80.22, after hitting the 76.40 buy point of a cup base. The relative strength line hit a 52-week high, as shown by the blue dot on MarketSmith.
The cruise line reported better-than-expected Q1 sales and a smaller than-expected loss on Thursday.
Peloton (PTON) gained 7% after BMO Capital upgraded the interactive fitness platform stock to market perform from under perform, with a price target of 9.50.
Also in IBD 50, cybersecurity provider Fortinet (FTNT) notched up 2.5% after BofA Securities upgraded the stock to a buy from neutral and raised its price target to 75 from 66.
IBD 50 stock Shockwave Medical (SWAV) tumbled 4% in heavy volume, on news that talks between the medial device manufacturer and Boston Scientific (BSX) have deteriorated. BSX gained 3.4% on the news.
Uber Technologies (UBER) rose 2.3% and is in the 5% buy zone reaching to 39.56, after hitting the 37.68 buy point of a cup base last week. The ride-share operator beat Q1 estimates last week.
American Airlines (AAL) rallied 4.2% after JPMorgan upgraded the airlines stock to overweight from neutral, and raised its price target to 29 from 26.
Catalent (CTLT) plunged over 26% in very heavy volume after postponing its third quarter earnings results. Catalent is the biggest S&P 500 loser today.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
YOU MAY ALSO LIKE:
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It
IBD Live: Learn And Analyze Growth Stocks With The Pros
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Want More IBD Insights? Subscribe To Our Investing Podcast
[ad_2]
Source link
