The Dow Jones Industrial Average rose in a mixed session that saw the Nasdaq inch lower. Berkshire Hathaway stock rallied after Warren Buffett announced his successor as Berkshire Hathaway (BRKB) CEO, while Dow Inc. (DOW) was the best performing blue chip.
The 10-year Treasury yield slipped back slightly to 1.61% after manufacturing data came out.
IHS Markit reported its final manufacturing purchasing managers index for April at 60.5. That is a step up from March’s 59.1 reading, but a shade below expectations at 60.6. Meanwhile the ISM Manufacturing Index came in below views. It registered 60.7 in April, while the consensus was for 65, according to Econoday data. It was also lower than the prior month’s level of 64.7.
Nasdaq Falters As S&P 500 Rises
The Nasdaq was lagging the other major indexes, giving up around 0.4%. Okta (OKTA) was the biggest laggard, giving up almost 4%. Coronavirus vaccine play Moderna (MRNA) fared best, rising almost 5% and nearing a 189.36 buy point.
U.S. Stock Market Today Overview
Last Update: 1:14 PM ET 5/3/2021
The S&P sectors were mixed, but there were more winners than losers. Energy and materials were leading, while consumer discretionary was the biggest laggard.
Small caps were managing to squeeze out a gain. The Russell 2000 was up around 0.5% on the stock market today.
Growth stocks were also managing to move higher, with the Innovator IBD 50 ETF (FFTY) up around 0.3%.
BioNTech (BNTX) was the top performing name on the IBD 50, gaining almost 10%. It is well extended from a 131.10 buy point from a long consolidation.
Dow Jones Rallies As Apple Eyes Buy Point
The Dow Jones Industrial Average was the leading major index, and could close at a new high. It was up around 0.8%.
Investors will want to see its relative strength line improve. It has been slipping of late, and remains well of its highs for the year.
Apple’s gain was left in the shade by Dow Inc. The chemicals stock was the top performing Dow component of the day, turning in a gain of almost 3%.
BRKB Gains As Warren Buffett Names Successor
Berkshire Hathaway stock rallied after Warren Buffett finally gave the answer to one of the biggest questions in business — the identity of his successor. He said Greg Abel, who runs the noninsurance businesses, will take over in his stead.
“The directors are in agreement that if something were to happen to me tonight, it would be Greg who’d take over tomorrow morning,” the legendary investor told CNBC Monday.
Berkshire’s Vice Chairman Charlie Munger dropped a massive hint during the company’s annual meeting in Los Angeles at the weekend, mentioning that “Greg will keep the culture.”
Abel, 58, has been a Berkshire vice chairman since 2018, and had long been viewed by analysts as a possible successor. The Canadian is chairman and CEO of Berkshire Hathaway Energy. He has also been vice chairman of Berkshire’s noninsurance operations since January 2018.
Berkshire Hathaway stock is closing in on a profit-taking zone after breaking out of a flat base at 235.09.
Berkshire Hathaway earnings for the first quarter, out Saturday, revealed the conglomerate bought $6.6 billion more shares after a record $27.4 billion in repurchases last year.
These Stocks Pass Buy
CarMax stock in buy zone after passing an ideal entry point of 136.64. The stock’s relative strength line is gaining steam once more, however its Composite Rating of 76 is not ideal. CarMax operates 160 used car stores in more than 70 metropolitan markets.
Lamar Advertising broke out of a flat base. The ideal buy point here is 100.48. But investors should keep in mind that Lamar reports earnings Tuesday morning.
Gray Television surged more than 12% as it raced out of buy zone on earnings. It is now well clear of a cup base entry point of 21.31.
The broadcasting company beat quarterly estimates and agreed to acquire Meredith‘s (MDP) Local Media Group in a deal valued at $2.7 billion. Meredith’s shares jumped 5% despite paring early gains.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.