Marriott International pleases with first-quarter numbers after market closes
Buffett's holding in Apple nearly tripled in the first quarer
S&P 500 down 1 at 2,398; Dow Jones up 4 at 21,011
After a hesitant start, indexes just about kept Friday's momentum going, helped by a small surge by Apple Inc (NASDAQ:AAPL).
The iPhone maker's market capitalization rose above a gob-smacking US$800bn on the back of news that Warren Buffett, the Sage of Omaha, had substantially increased his stake in the first quarter.
Apple shares closed at US$153, up 2.7%. That helped the Dow Jones post a modest five point gain at 21,012, but the broader-based S&P 500 was little changed at 2,399.
In after-hours trading hotels group Marriott International Inc (NASDAQ:MAR) was wanted as it posted an 11% year-on-year increase in first quarter earnings per share at 94 cents.
In constant currency terms, the group saw a 3.1% rise in revenue per available room.
The shares were 3.8% higher at just over US$100 in screen-based trading having ended official trading down 68 cents at US$96.37.
In Canada, the S&P TSX Composite advanced 70 points to 15,652.
13.00... Apple gves Dow some juice
Leading shares were marking time in the lunchtime session.
The Dow Jones crawled into positive territory, helped by glamor stock Apple Inc (NASDAQ:AAPL) hitting a new high after it was revealed legendary investor Warren Buffett had significantly upped his holding through his Berkshire Hathaway investment vehicle.
Apple's shares were up 2.6% at US$152.87, pushing the Dow to 21,011, up four points on the day.
The iPhone maker is now Berkshire Hathaway's second largest investment, with US$19.2bn of stock on its books at the end of March, up from US$7.1bn at the end of 2016.
The S&P 500, however, remained in the red, down a point at 2,398.
Inpixon (NASDAQ:INPX) shares more than doubled to US$3.85 on the back of a purchase order from a health insurer.
The data analytics company, valued at just US$7.9mln, said the order was worth around US$2.5mln.
10.00... Stocks mark time
As expected, stocks opened on the back foot after indexes reached new highs on Friday.
The benchmark S&P 500 retreated a couple of points to 2,397 while the Dow Jones was down 30 at 20,976.
The tech-heavy Nasdaq Composite briefly hit a new high this morning – as did the S&P 500 – but failed to keep the momentum going and after half an hour's trading was down 5 at 6,096, having momentarily broken through the 6,100 level.
Handbag maker Coach Inc. (NYSE:COH) has agreed to buy smaller rival Kate Spade & Co (NYSE:KATE) for US$2.4bn following months of talks.
Shares in Kate Spade climbed 8.1% to US$18.34 on the news, while Coach also received a lift, rising 6% to US$45.22.
Investors had little appetite for Tyson Foods Inc (NYSE:TSN) after its first quarter update.
The shares shed 5.8% at US$59.65 as first quarter sales eased to US$9.08bn from US$9.17bn the year before.
Net income tumbled to US$340mln from US$432mln.
US preview
US stocks are set to follow European blue-chips on the downward path after some disappointing Chinese trade figures.
Spread betting quotes indicated the S&P 500 index was set to open a fraction of a point lower at just under 2,399 while the 30-share Dow Jones average was tipped to start 20 points in the hole at around 20,986.
European markets enjoyed a brief relief rally as the far right failed to win the French election, losing out to centrist candidate Emmanuel Macron.
The rally quickly fizzled out – the results was expected - as investors turned their attention to the Chinese data.
Exports from the People's Republic were up 14% year-on-year in April, down from 22% in March.
The nation sucked in 18.6% more imports in April than it did a year earlier, but that also represented a slowdown from March, when the rise was 26.3%.
“Disappointing China trade data has also dampened optimism, pushing commodities lower. Investors have ushered in the new week by immediately shifting focus to the next month of risk events: An OPEC production cut extension meeting, UK General election, French parliamentary elections and Fed/ECB updates are all sure to keep us on our toes,” noted Mike van Dulken, head of research at Accendo Markets.
Today's agenda for US stock market
On a more short term view, AMC Entertainment Holdings Inc (NYSE:AMC), Marriott International Inc (NASDAQ:MAR) and Sturm Ruger & Company Inc (NYSE:RGR) are all scheduled to release results after the bell this evening, while energy company Comstock Resources Inc (NYSE:CRK) has already weighed in this morning with its first quarter figures.
The shares edged up 0.8% to US$7.98 in pre-market trading as the company revealed it produced 14bn cubic feet of natural gas and 265,000 barrels of oil in the first quarter.
Natural gas production was up 11% on a pro forma basis (adjusting for asset sales) from a year earlier.