Saturday, May 5th, 2018

 

Apple hits record high after Buffett's Berkshire increases stake

NEW YORK, May 5 ― Apple Inc's stock hit an all-time high yesterday after Warren Buffett's Berkshire Hathaway Inc disclosed it bought an additional 75 million shares of the iPhone maker in the first three months of the year. Buffett's increased…


Berkshire operating results improve; accounting change causes net loss

OMAHA, May 5 ― Berkshire Hathaway Inc today ended its more than year-long stretch of falling operating profit, while a new accounting rule caused the conglomerate chaired by Warren Buffett to suffer an overall net loss. The results were released…


US stocks rally after mixed jobs report; Dow +1.4%

NEW YORK: Wall Street stocks jumped Friday after a mixed US jobs report mitigated fears over inflation, as Apple shares rocketed higher after Warren Buffett increased his stake in the company.

The Dow Jones Industrial Average rose 1.4% to close the week at 24,262.51.

The broad-based S&P 500 gained 1.3% to end at 2,663.42, while the tech-rich Nasdaq Composite Index advanced 1.7% to 7,209.62.

The US economy added 164,000 jobs in April, which was below expectations. But the unemployment rate fell to 3.9%, the lowest since December 2000.

Investors were cheered by signs inflation remained tame, as average hourly wages rose just 0.2 percent. That figure was seen as reducing the odds the Federal Reserve will accelerate interest rate hikes.

“We don't see anything suggesting the Fed needs to be more aggressive with monetary policy and nothing to stop them from continuing to normalize it,” said Matt Miskin, market strategist at John Hancock Financial Services.

Apple shot up 3.9% after Warren Buffett's Berkshire Hathaway bought an additional 75 million shares of the technology giant, lifting Berkshire's overall stake to around five percent.

Beyond Apple, gains were fairly broad-based. All 11 sectors in the S&P 500 advanced, with technology leading and consumer goods, financials, industrials and materials all rising more than one percent.

A note from JPMorgan Chase recommended investing in equities after a market pullback since late January left stocks “meaningfully lower”.

“Although politics and trade war concerns are still a significant overhang, the worst of uncertainty and political risks might be behind us,” JPMorgan said in the note.

But Miskin of John Hancock predicted the market would “remain against the ropes” in spite of positive fundamental news, including good earnings.

“Generally, we're seeing a lack of risk taking preventing a more sustained upside breakout,” he said in a note.

“We think investors are wary about the surge in volatility to start the year, concerned about global trade negotiations, and debating whether we may have just witnessed the best of investing times in the cycle.” — AFP

1USD = RM 3.94


China state media strikes positive note after trade talks with US

BEIJING, May 5 — Chinese state media struck an optimistic note on trade talks between Chinese and US officials after US President Donald Trump threatened to impose tariffs on up to US$150 billion (RM591 billion) in Chinese goods over allegations…


Qatar steps in to rescue Rosneft’s troubled stake sale to China

LONDON, May 5 — Qatar is taking a stake in Rosneft of nearly 19 per cent, rescuing the Russian oil major from its stalled deal to sell a major stake to China’s CEFC. The deal strengthens ties between Moscow and Doha at a time when Qatar is…


Bursa likely to trade sideways next week

KUALA LUMPUR, May 5 — Bursa Malaysia is expected to move sideways next week amid lacklustre trading, soon after the conclusion of the US Federal Reserve’s (Fed) two-day Federal Open Market Committee meeting. Hermana Capital Bhd’s Chief…


Ringgit to trend lower against US dollar next week

KUALA LUMPUR, May 5 — The ringgit is expected to depreciate further to the 3.95 level against the US dollar next week, weighed by bullish sentiment in the US. Hermana Capital Bhd Chief Executive Officer and Chief Investment Officer Datuk Nazri…


Xerox appeals decision blocking Fujifilm deal as CEO returns

NEW YORK, May 5 — Xerox Corp yesterday yappealed a New York court ruling to block its deal with Fujifilm Holdings, just hours after the company announced that its ousted CEO and directors would remain in place. Xerox said its entire board and…


Trump team’s trade mission to China lays bare yawning divide

WASHINGTON, May 5 — President Donald Trump’s top economic advisers are returning home from Beijing with little more than glaring proof of how far apart the US and China stand on trade issues. A US delegation led by Treasury Secretary Steven…


Dudley says too early to declare victory on Fed inflation goal

WASHINGTON, May 5 — Federal Reserve Bank of New York President William Dudley said he is optimistic about US growth, while adding it’s too early to judge that the economy had overcome persistently low inflation. “I wouldn’t quite declare…