Stock Market Today: Dow Jumps as Amgen, Boeing Gain Ground

(Image credit: Jakub Porzycki/NurPhoto via Getty Images)

published 7 August 2023

Stock started the week on a positive note, with the main benchmarks closing higher Monday.

Blue chip stocks outperformed thanks to strong gains for drugmaker Amgen (AMGN) and aircraft manufacturer Boeing (BA), while Warren Buffett's Berkshire Hathaway (BRK.B) put in an impressive post-earnings showing.

After closing last week in the red, the S&P 500 (+0.9% at 4,518) and the Nasdaq Composite (+0.6% at 13,994) notched solid gains today. But it was the blue chip Dow Jones Industrial Average that outperformed, adding 1.2% to 35,473.

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Boosting the 30-stock index was Amgen (+4.0%), which continued to climb following last week's better-than-expected second-quarter earnings report. Boeing was also one of the best Dow Jones stocks today, adding 3.0% after a report in Bloomberg indicated the company will have its Starliner Capsule spacecraft ready by next spring for its first astronaut flight.

Berkshire pops on earnings, massive cash pile

Another big mover Monday was Buffett's Berkshire Hathaway, which rose 3.6% after the holding company over the weekend disclosed its second-quarter earnings. Berkshire reported net income of $35.9 billion for the three-month period vs a $43.6 billion loss in Q2 2022, while its cash pile grew to $147.3 billion from $130.6 billion in Q1.

Earnings season continues to be a modest success, says Mark Hackett, chief investment officer of Nationwide. "Positive themes include the resilient consumer, continued travel and entertainment demand, and strength in auto, industrial and homebuilding," while caution remains around macro uncertainty, negative operating leverage and wage pressure, Hackett says.

Corporate updates will stay in focus throughout the remainder of this week, with retailers starting to make an appearance on the earnings calendar. Logistics firm United Parcel Service (UPS) and media and entertainment giant Walt Disney (DIS) are also expected to report.

Tesla's CFO splits

In non-earnings news, Tesla (TSLA) stock slumped 1.0% after Zach Kirkhorn's surprising announcement that he has stepped down as chief financial officer (CFO) of the electric vehicle maker, effective August 4. Kirkhorn, who was rumored to be a potential successor to CEO Elon Musk, as reported in May by The Wall Street Journal, had been in the role for four years. He has been replaced by Vaibhav Taneja, who is also Tesla's chief accounting officer.

Looking ahead, investors are waiting for Thursday morning's release of the next Consumer Price Index (CPI). "Gasoline prices have been rising in recent weeks and Thursday's CPI report may reflect that," says Ryan Belanger, founder and managing principal at wealth management firm Claro Advisors. And this could "boost the Fed's arguments for remaining aggressive with policy," Belanger adds.

Currently, futures traders are pricing in an 87% chance the Fed keeps interest rates unchanged at its September meeting, according to CME Group.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.