Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market Primer: Stocks Flat After Record High

By

Not much news out of Berkshire's investor meeting.

PrintPRINT
After a record run on Friday following an unexpectedly good jobs report and the winding down of earnings season, stocks are flat at the start of this week.

Dow (INDEXDJX:.DJI) futures were up 0.01% at 14,899 after closing at a fresh record high on Friday. Futures contracts on the S&P 500 (INDEXSP:.INX) slipped 0.03% to 1,608.00 and Nasdaq (INDEXNASDAQ:.IXIC) futures rose 0.11% to 2,938.25.

The US economic calendar is mostly blank until Thursday after last week's bevy of data. European stocks were mostly flat today. British and Japanese markets are closed today for a holiday.

China's services sector slowed to its slowest since August 2011 in April. HSBC's (NYSE:HBC) non-manufacturing PMI survey clocked in at 51.1, down from 54.3 in March. Readings over 50 indicate an expansion of the sector.

French finance minister Pierre Moscovici declared that the European Commission's decision to give France two more years to get its budget deficit under 3% of GDP was the final nail in the austerity dogma's coffin.

"We're witnessing the end of the dogma of austerity" as the only tool to fight the euro debt crisis, Moscovici said on French radio. "We've been pleading for a growth policy for a year. Austerity on its own impedes growth."

The eurozone's composite PMI rose in April, but remains in reverse. The index rose to 46.9 from 46.5 in March, still short of the 50 threshold. Markit says that the reading suggests that the region's GDP will fall 0.4-0.5% quarterly. The analysts also expressed doubt that the European Central Bank's 25 basis point rate cut could have a discernible effect on the economy.

BMC Software (NASDAQ:BMC) shares could rise today as Reuters reported that Bain Capital and Golden Gate Capital, two private equity firms, could announce a $6.5 billion leveraged buyout of the company. Elliott Associates, another activist investor, has previously criticized BMC for missing opportunities in enterprise cloud software.

Berkshire Hathaway (NYSE:BRK.B) shares are up 2.13% at $110.95 this morning, following Warren Buffett's shareholder meeting in Omaha this weekend. Berkshire's first quarter operating profit rose to $4.9 billion, or $2,977 per share, up 41% from the year before and its book value increased by 5.5%. In the shareholder meeting, Buffett answered questions from hedge fund critic Doug Kass. According to the Wall Street Journal, Kass asked how Buffett's son Howard is qualified to be non-executive chairman of the company. Buffett reportedly handled the question well and said that Howard's role will be to keep Berkshire's culture alive after he himself retires or dies.

Mobile technology market analyst Horace Dediu of Asymco said that Apple (NASDAQ:AAPL) is missing out on 2.8 billion customers in emerging markets because of the requirements that it places on mobile carriers. To carry the iPhone, carriers must agree to hefty handset subsidies and minimum sales requirements.

Twitter: @vincent_trivett
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE