The Dow Jones Industrial Average fell further at midday while trading in stocks including Berkshire Hathaway (BRKA) briefly got halted amid technical issues. But the Nasdaq led as Nvidia (NVDA) popped after revealing more AI products over the weekend. Meme stock GameStop (GME) soared after Reddit investing personality Roaring Kitty unveiled a seemingly mammoth stake.
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The Dow Jones index was lagging the other major indexes. It fell around 250 points, or 0.7%.
The Nasdaq composite was off highs but remained up 0.2%. Autodesk (ADSK) was a star here as it popped around 6%. Vertex Pharmaceuticals (VRTX) fared well too as it rose nearly 3%.
Meanwhile, the S&P 500 reversed lower 0.2%. Paramount Global (PARA) was among the best S&P performers as it surged nearly 9% amid reports of a revised buyout offer from Skydance Media. CNBC reported the two parties have agreed to terms.
It said Skydance will buy out 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 the longer-term 200-day line.
Stock Market Today: Most Sectors Fall
The S&P 500 sectors were mostly negative. Technology and health care were the strongest. Energy and industrials were the worst-performing areas.
The Russell 2000 reversed lower, falling 0.3%. The Innovator IBD 50 (FFTY) exchange traded fund also saw early gains evaporate as it fell 0.2% on the stock market today.
Dow Jones Today: Boeing Stock Climbs
There was mixed action among the 30 Dow Jones Industrial Average components Monday.
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 around 2%. Apple (AAPL) was also solid as it rose nearly 1%.
Dow Inc. (DOW) lagged most on the Dow Jones today as it tumbled more than 3%. It was closely followed by Travelers (TRV) and Caterpillar (CAT), which fell roughly 3%.
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
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 more than 9% in heavy volume.
A Delaware a state court ruled it would allow more than 70,000 cases that allege its 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.
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 (BRKA) 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 were not affected. They was trading 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.
GameStop Soars After Roaring Kitty Post
Meme stock mania was back in full force Monday after influencer Keith Gill — known as 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, 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 nearly 24%. Fellow meme stock AMC Entertainment (AMC) popped nearly 11%.
Nvidia Stock Pops Amid New AI Products
Nvidia was making progress after CEO Jensen Huang touted future AI chips Sunday. The chip firm advanced 3% midday Monday. 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 is already set 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 3%, while Qualcomm trimmed gains to less than 1%.
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 is strong, reflected in the stock’s IBD Composite Rating of 98. SKWD is in the top 11% of issues in terms of price performance over the past 12 months.
Ryan Specialty Holdings is closing in on a cup-with-handle entry of 56, MarketSurge data shows. This is a first-stage pattern, a plus. The stock has a near-perfect EPS Rating of 98 out of 99. Earnings are seen 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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Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
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