Dow hits record as Chevron, Verizon gain on Buffett buys


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 35399.84 -55.96 -0.16%
CVX CHEVRON CORP. 98.39 -0.25 -0.25%
VZ VERIZON COMMUNICATIONS, INC. 54.77 0.00 0.00%

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 JPMORGAN CHASE & CO. 160.44 -2.61 -1.60%
PNC THE PNC FINANCIAL SERVICES GROUP, INC. 190.61 -3.90 -2.00%
AAPL APPLE, INC. 153.12 +4.52 +3.04%
WFC WELLS FARGO & CO. 48.41 -1.40 -2.81%

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. 125.72 -1.84 -1.44%

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. 1,549.00 +17.58 +1.15%

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 LP 9.30 -0.19 -2.00%
ENBL ENABLE MIDSTREAM PARTNERS LP 7.79 -0.23 -2.87%

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.


View more information: https://www.foxbusiness.com/markets/us-stocks-feb-17-2021

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