Dow hits record as Chevron, Verizon gain on Buffett buys
Warren Buffett gives Verizon, Chevron a little love
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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 | 31443.26 | -518.60 | -1.62% |
| CVX | CHEVRON CORP. | 102.47 | -0.85 | -0.82% |
| VZ | VERIZON COMMUNICATIONS INC. | 56.48 | -0.65 | -1.13% |
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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 | JP MORGAN CHASE & CO. | 151.51 | -1.59 | -1.04% |
| PNC | PNC FINL SVC | 175.06 | -3.51 | -1.97% |
| AAPL | APPLE INC. | 121.69 | -3.66 | -2.92% |
| WFC | WELLS FARGO & COMPANY | 37.54 | -0.72 | -1.88% |
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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. | 123.33 | -3.98 | -3.13% |
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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 | 1,239.74 | -61.60 | -4.73% |
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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 | 8.09 | -0.02 | -0.25% |
| ENBL | ENABLE MIDSTREAM PARTNERS LP | 6.92 | -0.12 | -1.78% |
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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.