U.S. Stocks Attempt a Rebound After a Week of Losses

Barry Adams
07 Aug, 2023
New York City

Market averages attempted a rebound after global markets dropped 2% in the previous week. 

Investors reviewed more earnings and awaited consumer and wholesale inflation later in the week. 

Market averages rebounded on the first day of a new week and Treasury yields eased ahead of inflation reports. 

Tech stocks traded mixed and Microsoft, Amazon and Meta Platforms advanced 0.5% but Apple Inc declined 2%. 

On the merger front Campbell Soup Company declined 1.8% after the food products maker agreed to acquire pasta sauce maker Sovos Brands Inc for $2.33 billion. 

 

U.S. Indexes & Yields 

The S&P 500 index traded up 0.4% to 4,495.84 and the Nasdaq Composite fell 0.3% to 13,877.90. 

The yield on 2-year Treasury notes decreased to 4.77%, 10-year Treasury notes inched lower to 4.08% and 30-year Treasury bonds edged down to 4.25%. 

Crude oil decreased $1.09 to $81.73 a barrel and natural gas prices increased 13 cents to $2.71 a thermal unit. 

 

U.S. Stock Movers 

Berkshire Hathaway Inc Class A jumped 3% to a record high of $550,000 after the diversified conglomerate said its operating earnings jumped 6.6% to $10.04 billion or $6,928.40 per Class A share. 

Revenue in the second quarter jumped to $92.5 billion from $76.2 billion, largely driven by the recent acquisition of Pilot Travel Centers which generated $14.75 billion in revenue in the period. 

The company's cash hoard soared to $147.4 billion, from $130.6 billion in the first quarter and higher interest rates also helped the company to generate more cash. 

Berkshire repurchased $1.4 billion of its own stock, significantly lower than the $4.4 billion repurchase in the first quarter. 

Tesla Inc declined 3.2% to $245.70 after the company announced the departure of Zachary Kirkhorn as chief financial officer after 13 years at the company and spending last four years and six months in the position. 

In the second quarter, Tesla announced earnings per share of 91 cents and better-than-expected operating margins despite company incentives that lowered net sale price of vehicles. 

Sovos Brands soared 25% to $22.52 after the pasta sauce maker agreed to be acquired by Campbell Soup for $2.33 billion or $23 a share. 

Including the debt, the purchase price is $2.7 billion and Campbell said it plans to finance part of the deal with the help of new debt.  

Separately, Sovos reported organic sales in its latest quarter jumped 16.3% from a year ago. 

Three months ago,  Campbell Soup agreed to sell Emerald Nuts for an undisclosed amount to Flagstone Foods.