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.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
Related Content
-
Cord Cutting Could Help You Save Over $10,000 in 10 YearsHow cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement RuleThe '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Stock Market Today: S&P 500, Nasdaq Near New HighsThe S&P 500 hasn't hit a new high since February. It's been since December for the Nasdaq.
-
Stock Market Today: Stocks Struggle to Sustain GainsMixed messages from multiple sources continue to make for a messy market for investors, traders and speculators.
-
We Are Peter Lynch: How to Invest in What You KnowTake a look around, go to a free stock market data website, and get to work.
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears EbbConstructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
AI vs the Stock Market: How Did Tech Stocks, Palantir and Albemarle Perform in May?AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in May.
-
Stock Market Today: "Good Trump" Gives Dow 740-Point BoostFriday's headwind was Tuesday's tailwind, as President Trump's social media posts continue to drag and drive financial markets.
-
A Case Study in Mismatched Fund ReturnsStock Market Why do a fund's returns sometimes differ from its underlying index? A longstanding legal principle holds the key.
-
Stock Market Today: Stocks Drop as Trump Takes Aim at EU, AppleThe commander in chief issued new tariff threats against the European Union and the iPhone maker.
