Dow hits record as Chevron, Verizon gain on Buffett buys
Warren Buffett gives Verizon, Chevron a little love
U.S. equity markets finished mixed Wednesday as investments made by Warren Buffett's Berkshire Hathaway boosted the Dow to a record high while investors kept a watchful eye on the bond market.
The Dow Jones Industrial Average rose 91 points, or 0.29%, to finish in record territory for the third straight day as Chevron Corp. and Verizon Communications rallied on the news that Berkshire raised its stake in the two companies.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38085.8 | -375.12 | -0.98% |
| CVX | CHEVRON CORP. | 165.32 | +1.63 | +1.00% |
| VZ | VERIZON COMMUNICATIONS INC. | 39.22 | -0.27 | -0.68% |
The conglomerate exited positions in Pfizer Inc., JPMorgan Chase & Co. and PNC Financial Services Group Inc, according to a 13-F filing, while also trimming its holdings in Apple Inc. and Wells Fargo & Co.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 193.29 | +0.17 | +0.09% |
| PNC | THE PNC FINANCIAL SERVICES GROUP INC. | 156.33 | -1.74 | -1.10% |
| AAPL | APPLE INC. | 169.89 | +0.87 | +0.51% |
| WFC | WELLS FARGO & CO. | 59.92 | -0.69 | -1.13% |
While the Dow gained, the S&P 500 and the Nasdaq Composite slid 0.03% and 0.58%, respectively, as investors weighed rising interest rates.
Bond Yields Rising
The benchmark 10-year yield was on the rise again Wednesday, ticking above 1.32%, after a report showed producer prices rose 1.3% month over month in January, faster than the 0.4% increase that analysts were anticipating.
The jump in producer prices put a damper on the strong retail sales report, which showed a 5.3% month-over-month increase in January compared with the 1.1% gain that was expected.
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Elsewhere, Hilton Worldwide Holdings Inc. reported a surprise quarterly loss as a resurgence in COVID-19 cases resulted in tighter travel restrictions and fewer bookings. Revenue per available room, a key industry metric, was down 59% year over year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HLT | HILTON WORLDWIDE HOLDINGS INC. | 203.87 | -0.75 | -0.37% |
Shopify Inc. posted stronger-than-expected quarterly earnings and revenue but warned 2021 revenue growth will be slower than last year as COVID-19 restrictions are lifted.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SHOP | SHOPIFY INC. | 70.53 | -1.74 | -2.41% |
In deals, oil and gas pipeline company Energy Transfer LP agreed to buy natural gas liquids transportation provider Enable Midstream Partners for $7.2 billion, including debt. The deal pays Enable common unitholders 0.8595 Energy Transfer common units for each unit they own.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ET | ENERGY TRANSFER LP | 15.94 | +0.07 | +0.44% |
| ENBL | n.a. | n.a. | n.a. | n.a. |
In commodities, West Texas Intermediate crude oil added $1.09 to $61.14 per barrel as wintry weather kept production idled across parts of Texas. Elsewhere in the complex, gold traded down $26.10 to $1,771.10 an ounce.
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European markets were lower with France’s CAC 40 slipping 0.36%, Britain’s FTSE 100 down 0.56% and Germany’s DAX 30 weaker by 1.1%.
In Asia, Japan’s Nikkei 225 lost 0.58% and Hong Kong’s Hang Seng index added 1.1%. China’s Shanghai Composite remained closed in observance of the Lunar New Year.