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.
|I:DJI||DOW JONES AVERAGES||31443.26||-518.60||-1.62%|
|VZ||VERIZON COMMUNICATIONS INC.||56.48||-0.65||-1.13%|
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.
|JPM||JP MORGAN CHASE & CO.||151.51||-1.59||-1.04%|
|PNC||PNC FINL SVC||175.06||-3.51||-1.97%|
|WFC||WELLS FARGO & COMPANY||37.54||-0.72||-1.88%|
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.
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.
|HLT||HILTON WORLDWIDE HOLDINGS INC.||123.33||-3.98||-3.13%|
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.
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.
|ENBL||ENABLE MIDSTREAM PARTNERS LP||6.92||-0.12||-1.78%|
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.
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.