Major Averages Traded Down On Wall Street, Berkshire Hathaway Earnings In Focus

Barry Adams
08 May, 2023
New York City

Stocks looked down in early trading and investors mulled over the latest rate hikes and jobs report released last week. 

Benchmark indexes are expected to trade in a tight trading range and investors await the consumer inflation report on Wednesday. Moreover, above 1,100 companies are scheduled to release earnings this week. 

Investors are divided over the future rate path despite the current wave of rate hikes the jobs market remains resilient and economic growth has waned slightly. 

Some investors are hoping that the job market's resilience may help the Federal Reserve in navigating the economy to soft landing while tackling high inflation. 

But higher rates are also causing significant losses in Treasury securities held by banks of all sizes and making some banks more vulnerable to deposit outflows. 

Moreover, higher rates are also expected to negatively impact commercial real estate and slowdown lending to small and medium-sized businesses. 

 

U.S. Indexes & Yields 

The S&P 500 index declined 0.1% to 4,131.50 and the Nasdaq Composite declined 0.4% to 12,191.99. 

The yield on 2-year Treasury notes hovered at 3.98%, 10-year Treasury notes edged up to 3.49% and 30-year Treasury bonds held at 3.81%. 

Crude oil rose $1.89 to $73.18 a barrel and natural gas prices rose 5 cents to $2.19 a thermal unit. 

 

U.S. Stock Movers 

Berkshire Hathaway Inc class A share increased 0.5% to $491,840 and Class B share increased  1.3% to $323.88 after the insurance to utilities conglomerate reported its latest quarterly results. 

The rebound in the insurance business lifted its operating earnings by 12%. 

Regional banks extended gains for the third day in a row. 

PacWest soared about 33.8% to $7.71 following a 81% increase Friday's trading after the regional bank trimmed its dividend to 1 cent a share to shareholders on record on May 15 payable on May 31. 

The company also declared a quarterly cash dividend of 48.45 cents per depositary share on its 7.75% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A. 

The dividend will be payable June 1, 2023 to stockholders of record as of May 15, 2023.

Zions Bancorp increased 8.3% to $25.69 and Western Alliance jumped 14.1% to $30.99.  

AMC Entertainment Holdings Inc declined 3.2% to $5.70 after the company said it reached a settlement in a shareholder class action lawsuit against its plan to convert Preferred Equity Units to common stocks.  

The plan was previously approved by shareholders in March. 

Viatris Inc increased 3.4% to $9.60 after the pharmaceutical company reiterated its full-year outlook. 

Total net sales in the first quarter declined 11% to $3.7 billion from $4.2 billion and net income plunged 44% to $224.7 million from $399.2 million and diluted earnings per share decreased to  19 cents from 33 cents a year ago.