U.S. equity markets were mixed on Monday and on track to wrap up their best month since April.

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The Dow Jones Industrial Average fell 185 points, or 0.65%, while the S&P 500 was down 0.05% and the Nasdaq Composite was higher by 0.48%.

All three of the major averages look to be on track for a fifth straight month of gains and are looking at their best five-month stretches in years.

With one trading day left in August, the Dow has rallied 31% since the end of March and on pace for its best five-month stretch since March 1986.

The S&P 500, meanwhile, has climbed 36%, the largest five-month advance since October 1938, while the Nasdaq has surged 52%, unrivaled since the peak of the tech bubble in March 2000.

TESLA, APPLE STOCK SPLITS PAVE WAY FOR MORE GAINS

Looking at stocks, Tesla Inc. shares look a lot cheaper on Monday after splitting 5-for-1 to $442.68. Likewise for Apple Inc. shares, which split 4-for-1 to $124.81. Heavy post-split interest was causing users of TD Ameritrade, E-Trade and Charles Schwab to have difficulty accessing their accounts.

TickerSecurityLastChangeChange %TSLATESLA INC.487.80+45.12+10.19%APPLn.a.n.a.n.a.n.a.AMTDTD AMERITRADE HOLDING38.68-0.50-1.28%ETFCE*TRADE GROUP (E*TRADE BANK AG)54.29-0.36-0.66%SCHWCHARLES SCHWAB35.78-0.49-1.36%

Apple’s split caused a rejiggering of the Dow, which on Monday will see Salesforce.com Inc., Amgen Inc. and Honeywell International Inc. replace Exxon Mobil Corp., Pfizer Inc. and Raytheon Technologies Corp.

TickerSecurityLastChangeChange %CRMSALESFORCE.COM268.18-2.92-1.08%AMGNAMGEN INC.252.80-0.32-0.12%HONHONEYWELL INTERNATIONAL INC.165.16-3.22-1.91%XOMEXXON MOBIL CORPORATION39.98-0.70-1.73%PFEPFIZER INC.37.66-0.24-0.65%RTXRAYTHEON TECHNOLOGIES CORP61.1993-1.04-1.67%

Meanwhile, Warren Buffett-led Berkshire Hathaway unveiled a 5% stake in Japanese trading houses Itochu Corp., Marubeni Corp., Mitsubishi Corp, Mitsui & Co. and Sumitomo Corp. The stakes, which are worth $6.21 billion and give Berkshire exposure to companies outside the U.S., could be raised to as high as 9.9%, the firm said.

On the deal front, Swiss multinational Nestle S.A. agreed to pay $2 billion for full ownership of peanut allergy treatment maker Aimmune Therapeutics Inc. Nestle, which already owned an approximate 25.6% stake in Aimmune, will pay $34.50 per share, a 174% premium to Friday’s closing price of $12.60.

TickerSecurityLastChangeChange %BRK.BBERKSHIRE HATHAWAY INC.218.21-0.34-0.16%AIMTAIMMUNE THERAPEUTICS34.16+21.56+171.11%

Elsewhere, United Airlines Inc. will permanently remove the $200 change fee for most domestic flights as it hopes to gain a competitive advantage amid the COVID-19 pandemic.

Also in the space, American Airlines Inc. cut its October flying capacity by 55% due to a continued drop in demand amid the pandemic. The airline said last week it would furlough or layoff 19,000 workers by Oct. 1.

TickerSecurityLastChangeChange %UALUNITED AIRLINES HLDG.36.16-1.18-3.17%AALAMERICAN AIRLINES GROUP INC.13.13-0.46-3.35%NIONIO INC.18.79+0.29+1.57%

Chinese Tesla rival Nio Inc. sold 88.5 million American depository shares, raising $1.5 billion. The electric-vehicle maker, which initially planned to sell 77 million shares, boosted the size of the offering amid red-hot investor demand for EV shares.

Looking at commodities, West Texas Intermediate crude oil jumped 25 cents to $43.22 per barrel while gold added $3.10 to $1,978 an ounce.

U.S. Treasurys were little changed with the 10-year note yield holding near 0.73%.

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European markets were trading lower with France’s CAC off 0.1%, Germany’s DAX slipping 0.05% and Britain’s FTSE weaker by 0.61%.

In Asia, Japan’s Nikkei gained 1.12% after the announcement of Buffett’s investment in the Japanese trading houses, while China’s Shanghai Composite and Hong Kong’s Hang Seng slid 0.24% and 0.96%, respectively.

Source Link:
https://www.foxbusiness.com/markets/us-stocks-aug-31-2020

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