Markets

Stock Market Today: Nasdaq Rolls, S&P Still Can't Catch the Bull

Tesla (TSLA) and Nvidia (NVDA) helped pushed the Nasdaq to new highs Monday, but the S&P 500, while up, couldn't get over the record hump.

Amid little traction on a new round of federal economic stimulus, the more diverse blue-chip indices struggled to make hay Monday while the tech-heavy Nasdaq resumed its leadership role.

The Nasdaq Composite closed 1.0% higher to a record 11,129. It received help from Nvidia (NVDA, +6.7%), which jumped after a Susquehanna analyst raised his price target from $450 per share to $540. It also got a boost from Tesla (TSLA, +11.2%), which is up a staggering 33% since Aug. 11, when the EV maker announced it would split its stock 5-for-1.

Joe Duran, head of Goldman Sachs Personal Financial Management, says tech valuations might be somewhat stretched, but they're mostly justified by the fundamentals.

"Investors will likely continue to assign a premium to companies that are perceived to be most insulated from the potential risks to the U.S. economic recovery," he says. "The low interest rate environment also generally supports a high valuation premium for secular growth companies.

"We maintain our overweight recommendation within Information Technology, which has strong secular growth prospects, 'quality' attributes, and trades at valuations that are in line with fundamentals – the types of stocks that the near-term uncertainties around the US outlook and the risk of longer-term economic consequences should continue to favor.

The rest of the major indices finished with more modest results. The S&P 500 gained 0.3% to 3,381 but remained 5 points shy of its all-time high, and the Dow Jones Industrial Average declined 0.3% to 27,844. The small-cap Russell 2000 improved by 0.4% to 1,584.

Warren Buffett's Busy Second Quarter

Buffett-ologists, rejoice: Berkshire Hathaway's (BRK.B) latest buys and sells have been made public.

Investors routinely flip through the Berkshire Hathaway equity portfolio for insights, given the stellar long-term success of its CEO, Warren Buffett. And his holding company's recent 13F filing with the SEC shows that the Oracle of Omaha kept himself busy with a couple dozen moves throughout the second quarter.

Buffett completely exited several stakes and started a new position connected to gold – an asset that has delivered electric returns in 2020, but also an asset that he has publicly maligned several times over the years.

"I would rather trust in the intrinsic value of a bunch of really fine businesses run by good managers selling products that people like to buy and have liked to buy for a long time, and then exchanging their future efforts, the money that comes from their wages, for See's Candy or Coca-Cola or whatever, than take some piece of metal that people dig out of the ground in South Africa and then put back in the ground at Fort Knox, you know, after transporting it and insuring it and everything else," Buffett said at the 2000 annual Berkshire Hathaway meeting.

If you're curious about the legendary investor's most recent comings and goings, including his $5 billion-plus bet on himself, read on as we break down what Warren Buffett was buying during the second quarter.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
7 Best Commodity Stocks to Play the Coming Boom
commodities

7 Best Commodity Stocks to Play the Coming Boom

These seven commodity stocks are poised to take advantage of a unique confluence of events. Just mind the volatility.
September 8, 2021
Stock Market Holidays in 2021
Markets

Stock Market Holidays in 2021

Is the stock market open today? Take a look at which days the NYSE, Nasdaq and bond markets take off in 2021.
September 2, 2021

Recommended

Stock Market Today (9/21/21): Stocks Finish Mixed Ahead of Fed
Stock Market Today

Stock Market Today (9/21/21): Stocks Finish Mixed Ahead of Fed

The latest Fed policy announcement is due out tomorrow afternoon.
September 21, 2021
All 30 Dow Jones Stocks Ranked: The Pros Weigh In
blue chip stocks

All 30 Dow Jones Stocks Ranked: The Pros Weigh In

The Dow Jones Industrial Average is made up of 30 blue chips that are tops in their industries. But some Dow Jones stocks are better opportunities tha…
September 21, 2021
Stock Market Today (9/20/21): China's Evergrande Crisis Knocks 614 Points Off Dow
Stock Market Today

Stock Market Today (9/20/21): China's Evergrande Crisis Knocks 614 Points Off Dow

A possible debt default for a Chinese real estate giant sent shockwaves across global markets and put a dent in U.S. stocks Monday.
September 20, 2021
China's Evergrande Crisis: A Real Threat to U.S. Stocks?
Foreign Stocks & Emerging Markets

China's Evergrande Crisis: A Real Threat to U.S. Stocks?

A looming debt default by Chinese real estate titan Evergrande is sparking fears of global contagion and knocking stocks from their perches.
September 20, 2021