The Dow Jones Industrial Average continued to give up ground Monday while trading in Berkshire Hathaway (BRKA) and other stocks restarted after a halt due to technical issues. The Nasdaq composite managed to contain its losses on the stock market today as Nvidia (NVDA) popped on the release of more artificial intelligence products over the weekend. Meanwhile, GameStop (GME) soared as Reddit investing personality Roaring Kitty disclosed a large stake in the meme stock.
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The Dow Jones index lagged the other major indexes as early losses intensified. It lost more than 350 points in recent action, or 0.9%.
The Nasdaq composite managed to cut its losses and was flirting with the break-even point. Autodesk (ADSK) fared best, but early gains faded as it rose nearly 4%. Constellation Energy (CEG) lagged as it fell more than 5%.
Meanwhile, the S&P 500 dropped 0.5%. Paramount Global (PARA) was among the best S&P performers as it surged nearly 8% amid reports of a revised buyout offer from Skydance Media. CNBC reported the two parties have agreed to terms.
Paramount said Skydance will buy nearly 50% of the class B shares for $15 each. This is in addition to paying $2 billion for National Amusements, which owns 77% of the class A voting shares of Paramount.
Skydance and its private equity backers RedBird Capital and KKR would end up owning two-thirds of Paramount. Despite gapping up above its other moving averages, Paramount stock remains below its longer-term 200-day line.
The S&P 500 sectors were mostly negative on the stock market today. Only health care was managing to hold in positive territory. Energy and industrials were the worst-performing areas.
Early gains for the Russell 2000 melted away as it fell almost 1%. The Innovator IBD 50 (FFTY) exchange traded fund also reversed lower, falling 0.2% on the stock market today.
Warren Buffett Stock ‘Falls’ 99%, Trading Briefly Halted
Trading was halted in some stocks amid technical issues at the New York Stock Exchange.
Barrick Gold (GOLD) and Buffett’s Berkshire Hathaway were among the equities affected.
The class A Berkshire shares fell by 99.9%. Trading was halted with the stock trading for 185.10 compared with Friday’s closing price of 627, 400. Needless to say, such a dramatic plunge, if it had been actually correct, would trigger multiple sell signals.
B class shares of Berkshire remained unaffected. They traded as normal, down less than 1%. Outside of Berkshire, Barrick Gold and NuScale Power (SMR) were also affected. Shares now appear to be trading normally.
Stock Market Today: Nvidia Stock Pops Amid New AI Products
Nvidia was making progress after Chief Executive Jensen Huang touted future AI chips Sunday. The chip firm advanced more than 3% Monday afternoon. The Leaderboard stock is extended past a 922.20 entry.
Huang announced plans for the Blackwell Ultra chip in 2025 and a next-generation Rubin platform for 2026. Nvidia already plans to roll out Blackwell AI chips this year.
The product announcements were made on the eve of the Computex 2024 trade show in Taiwan. Other key firms are making announcements at the event. Advanced Micro Devices (AMD) CEO Lisa Su gave an AI roadmap for the next two years and touted her firm’s latest processors for AI PCs.
And Qualcomm (QCOM) Chief Executive Cristiano Amon flaunted his firm’s latest Snapdragon chips for Microsoft Copilot+ PCs.
AMD stock reversed lower, falling more than 3%, while Qualcomm also reversed lower, falling 0.6%.
GameStop Soars On Roaring Kitty News
Elsewhere, meme stock mania was back in full force Monday after influencer Keith Gill — known as Reddit investing personality Roaring Kitty — shared a social media post that showed a seemingly substantial stake in GameStop.
According to his Reddit post, he has a holding of 5 million shares, or nearly 2% of the publicly available stock. Additionally, the trader looks to have snared $65.7 million worth of GameStop call options.
Last month, he sent GameStop shares soaring after he posted an image on X of a man on a chair holding a video game console. This was his first post on the platform in three years.
GameStop was off opening highs but remained up around 30% on the stock market today. Fellow meme stock AMC Entertainment (AMC) popped more than 13%.
Despite its strong jump, GameStop is a mediocre performer. It holds an IBD Composite Rating of 67 out of 99.
Dow Jones Today: Boeing Stock Climbs, CAT Lowest By Whisker
There was mixed action among the 30 Dow Jones components on the stock market today.
Boeing (BA) fared best as it rallied more than 3%. It has now climbed back above the 50-day moving average, MarketSurge data shows.
Merck (MRK) also outperformed as it popped nearly 2%. Apple (AAPL) saw early gains fade, but remained up 0.6%.
Caterpillar (CAT) was the weakest performer on the Dow Jones today as it fell more than 3%. Dow Inc. (DOW) and Chevron (CVX) closely followed as both suffered similar declines.
Fed Official Sees ‘Extended’ Hold on Rates
Minneapolis Fed President Neel Kashkari said he expects interest rates to hold steady for an “extended period of time.”
“The economy is, in the U.S., quite strong, the labor market is strong, inflation is coming down and many, many people are deeply unhappy about the status of the economy,” he said. “I think it’s because of the high inflation that they’ve experienced.”
Kashkari made the remarks on a Financial Times podcast May 27, ahead of the Federal Open Market Committee’s blackout period.
Treasury yields extended a decline, though. The 10-year yield fell 11 basis points to 4.41% and the two-year slid seven basis points to 4.82%. A raft of jobs data this week could offer further clarity on the path of rates going forward.
Meanwhile, the Institute for Supply Management’s manufacturing index fell to 48.7% in May from the previous month’s mark of 49.2%. This was a three-month low. Readings below 50% signal that the manufacturing sector is contracting.
Stock Market Today: GSK Flashes Sell Signal, GameStop Soars
GSK (GSK) flashed multiple sell signals — knifing below the 50-day line and falling more than 7% below a 43.84 entry — as it dived nearly 9% in heavy volume.
A Delaware state court ruled it would allow more than 70,000 legal cases that allege GSL’s Zantac heartburn drug causes cancer to proceed to trial. It decided on Friday that expert witnesses for the plaintiffs could present evidence related to the drug, which has been discontinued. GSK is trying to appeal the ruling.
Outside Dow Jones: Stocks Dig In Near Entries
Some strong stocks were digging in near potential buy points. Skyward Specialty Insurance (SKWD), Ryan Specialty Holdings (RYAN) and Novo Nordisk (NVO) were among them.
Skyward Specialty Insurance is nearing a midstage flat-base buy point of 38.64. All-around performance remains strong, as reflected in the stock’s IBD Composite Rating of 98. Skyward is in the top 11% of issues in terms of price performance over the past 12 months.
Ryan Specialty Holdings was closing in on a cup-with-handle entry of 56 on the stock market today, MarketSurge data shows. This is a first-stage pattern, a plus. The stock has a near-perfect Earnings Per Share Rating of 98 out of 99. Analysts see earnings popping 27% this year.
Novo Nordisk has formed a cup-with-handle base with a potential entry point of 137.22. Both price and earnings performance are very strong. But the base is late stage, which carries higher risk.
The stock is a member of the IBD Leaderboard list of top stocks.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
