Dow Jones Today: Stocks Rise in Early Trading, Building on Friday's Gains Amid Hopes For Interest Rate Cuts
Apple in Focus After Berkshire Reduces Stake
54 minutes ago
Apple (AAPL) remains in focus Monday, after a big gain on Friday, following news over the weekend that Warren Buffett’s Berkshire Hathaway had sliced its stake in the iPhone maker during the first quarter.
Though Apple remains by far Berkshire’s largest stock holding, the latest reduction is far greater than the 10 million-share cut disclosed for the fourth quarter. Berkshire is also Apple’s single largest shareholder.
Buffett assured investors at the company’s shareholder meeting on Saturday that his views on the tech giant’s business hadn’t changed, adding that it’s “extremely likely” that Apple will remain Berkshire’s largest stock holding at the end of 2024.1
When asked whether his view on Apple had changed, the Oracle of Omaha told shareholders that he thought Apple is an even better business than American Express (AXP) and Coca Cola (KO), two of Berkshire’s other large holdings.
Buffett’s remarks may have helped alleviate investors’ concerns that Berkshire was reducing exposure to Apple over valuation concerns following its 48% gain in 2023 and forward earnings multiple of 28 times. Still, the stock may face short-term price fluctuations as investors digest Berkshire’s latest sales in the stock.
Apple shares, which were down 0.5% at $182.46 in early trading Monday, have oscillated roughly within a 30-point trading range since August 2023, with the price testing the pattern’s upper and lower levels several times over the past eight months. More recently, the stock gapped above the 200-day moving average on Friday after posting a better-than-expected earnings report and announcing a $110 billion stock buyback program.
If the shares continue to see follow-through buying, investors should monitor the $196 level, an area on the chart where the price may encounter overhead resistance from the range’s top trendline. However, during periods of weakness, watch for a potential gap fill down to around $173, which sits in close proximity to the 50-day moving average.
Stock Futures Rise, Building on Two Weeks of Gains
2 hr 3 min ago
Futures contracts tied to the Dow Jones Industrial Average were up 0.4%.
S&P futures gained 0.5%.
Nasdaq futures traded 0.4% higher about 45 minutes before Monday’s opening bell.