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.
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.
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.
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%.
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.