Shares rose on Monday in the first trading session in May, amplified by gains and rising comments made on Saturday by Berkshire Hathaway CEO Warren Buffett. Shares of IBD 50 BioNTech and ASML Holding were early leaders. And chemical maker Dow and IBM have pledged strong early leaders for the Dow Jones today.
Dow industrialists collected 300 starting bell points, achieving an early growth of 0.8%. The S&P 500 jumped 0.5%. Meanwhile, the Nasdaq Composite added 0.2% to the stock market today since Dexcom (DXCM), Tesla (TSLA) and Advanced micro devices (AMD) lags behind the bottom of the Nasdaq 100.
Amgen (AMGN) jumped 2% to lead both the Nasdaq 100 and the Dow Jones today. Walgreens (WBA) also rose more than 2%, trading high on both indices.
In the revenue news, Textainer Group Holdings (TGH) increased by 4%. Estee Lauder (EL) fell by more than 5% after missed revenue and revenue targets.
Prepare for market action on Wednesday by reading the IBD Investment Action Plan.
Dow Jones Today: Caterpillar, Disney
Dow industrialists are getting a break this week after a heavy dose of reports from last week. Walt Disney (DIS) is the next component of the Dow Jones to report on May 13.
The caterpillar (CAT) gained 0.9% earlier to trade the highest in the Dow Jones today. Shares of the heavy equipment manufacturer fell 1.6% in April, limiting the 12-month rally. The stock uses time constructively, forming a five-week flat base with a buyout point of 237.88. Shares on Friday ended about 4% below that entry.
Shares of Walt Disney jumped 1.4% early Monday. Disneyland, the company’s theme park in Anaheim, California, opened on Friday to California residents with limited capacity after a 412-day hiatus.
Shares of Disney have gained in six of the last eight sessions, possibly improving on the right side on a seven-week consolidation.
Econ data: PMI production in April
Researcher Markit reported its final index of production purchase managers for April at 60.5. This is a step up from 59.1 in March, but slightly below expectations at 60.6.
The Institute for Supply Management launches its PMI in April at 10:00 ET. In addition, the Ministry of Commerce published figures for construction costs in March at 10 am.
Stock markets in Paris and Frankfurt rose 0.5% and 0.7% in afternoon trading. Hong Kong’s Hang Seng index fell 1.3%. The stock exchanges in London, Tokyo and Shanghai were closed for rest.
BioNTech / Pfizer is seeking approval in India
Based in Germany BioNTech (BNTX) jumped 7.3% while Pfizer (PFE) rose 0.8% after reports that companies are exploring with the Indian government how to establish an “accelerated approval path” in the country for the jointly developed Covid-19 vaccine. Pfizer also announced a $ 70 million donation of vaccine donations to India.
Shares of IBD 50 BioNTech are expanding, which is almost 44% more than the break on April 14. Pfizer shares traded below 39.77 points for purchase on a 20-week basis with a cup with a handle.
Vaccine peer Modern (MRNA) jumped 3% early Monday. CNBC announced that the company will donate 34 million doses of its Covid-19 vaccine to efforts to spread COVAX globally. The general agreement for 500 million doses will see most of its deliveries by the company in 2022.
Shares of Moderna ended on Friday with less than 6% below the point of buying on a glass basis at 189.36.
Buffett: Props to the economy
The shares gained momentum on Saturday when Berkshire Hathaway (BRKA) CEO Warren Buffett gave shareholders a bullish look at the bulk of US market action. U.S. economic growth has been “resurrected in an extremely efficient way” through a combination of a monetary stimulus from the Federal Reserve and a fiscal stimulus from the US Congress, Buffett said, according to Reuters, leaving 85% of the economy “in super high gear.”
Against this backdrop, the rise of special purpose vehicles or SPACS and inexperienced investors hoping for quick wealth, markets feel like a casino, Buffett told the group. During the meeting, he said the Berkshire Hathaway board had agreed that non-insurance business vice president Greg Abel would most likely take over the company if the 90-year-old Buffett retired.
Court Dockett: Apple, McKesson, Cardinal, ABC
The lawsuits may attract attention this week, with Epic Games suing Apple in a lawsuit that could determine how the iPhone maker manages its lucrative App Store.
And on Monday in West Virginia begins a process that can determine whether the country’s dominant drug dealers – McKeson (MKC), Cardinal health (CAH) and AmerisourceBergen (ABC) – bear any financial guilt regarding the opioid crisis affecting the community. Up to 3,000 other such cases could potentially depend on the outcome. The three wholesalers control 95% of drug distribution in the United States
Bitcoin Rebounds, Ethereum exceeds $ 3,000
Bitcoin prices have risen nearly 2 percent to just under $ 58,000, according to CoinDesk. The cryptocurrency reached a new high above $ 64,800 on April 14, before Coinbase Global (COIN) IPO. Bitcoin fell about 3% in April, but continues to rise by more than 100% since December 31, after starting the year just over $ 29,000.
Competing cryptocurrency Ethereum jumped more than 6% to more than $ 3,100 earlier Monday.
Dow Jones Today: Chasing the S&P 500
The Dow Jones today took place in May with a three-month rally under its belt, trading at record highs and resting neatly on the 21-day exponential moving average. The S&P 500 reported six days of extremely strong trading, staying above its 21-day line and slightly above record highs, following its strongest monthly showing since November.
The Nasdaq Composite is up and running for six months. It beat the S&P 500’s lead in April, 5.4% to 5.2%, and doubled the Dow’s yield of 2.7% for the month.
For a more detailed analysis of the current stock market and its state, study the big picture.
The big photo on Friday showed that the indices have been moderating over the past few weeks. The Nasdaq tested resistance around February 16 at 14,175. The S&P 500 reached 5.5% over its 50-day move when it peaked on Thursday. This maintains some pressure for the index to consolidate and allows this 50-day line to catch up.
And even after a strong month, the technology-oriented Nasdaq is lagging behind for the year. The index rose 7.3% in April. The S&P 500 increased its profit to 11.3%. Dow industrialists have 10.7% for the year.
Stocks to watch
Among the best stocks to watch this week, Dow Jones Goldman Sachs shares formed a flat base with 356.95 entries.
Rio Tinto (RIO) is the basis for a cup with 88.83 points for purchase. Cheesecake Factory (CAKE) returns below entrance 63.30 after clearing it on Thursday during the day. Generac (GNRC) is in a three-week plan with 342.38 points for purchase. Fri9 (FIVN) has a buy point of 201.85 from the cup base, but aggressive investors can use 181.98 as an early entry from the handle.
On the IBD Leaderboad list, shares of Direxion Daily Regional Banks Bull 3X (DPST) jumped 2.2% at the start of trading. The fund is well below 307.26 points for purchase in a seven-week cup base. But it is breaking the trend line at this base, offering aggressive investors early, alternative entry.
Find Alan R. Elliott on Twitter @IBD_Aelliott
YOU MAY ALSO LIKE:
5 agricultural stocks ahead of the market because the price of corn is rally
Catch the next big win with MarketSmith
Want to make quick profits and avoid big losses? Try SwingTrader
Best growth stocks to buy and watch
IBD Digital: Unlock IBD’s first-class lists, tools and analysis today