Here are the most important news, trends and analysis that investors need to start their trading day:
Traders on the floor of the New York Stock Exchange.
Dow futures jumped 200 points on the first trading day of May. The 30-stock average dropped 185 points, or 0.5%, on Friday but still closed out April with a monthly gain of 2.7%. The S&P 500 and Nasdaq fared worse than the Dow on Friday but each turned into more than 5% gains for all of April. The old Wall Street adage, “sell in May, go away,” does not appear to be materializing Monday, but it’s a historical trend investors will be watching as May plays out. Stocks tied to the economic comeback from Covid were higher in the premarket, including Norwegian Cruise Line and Carnival and the major U.S. airlines.
Greg Abel at Berkshire Hathaway’s annual meeting in Los Angeles California. May 1, 2021.
Gerard Miller | CNBC
Berkshire Hathaway‘s Charlie Munger, 97, inadvertently revealed who would succeed Warren Buffett as CEO. CNBC confirms it would be Vice Chairman Greg Abel. “If, heaven forbid, anything happened to Greg tonight then it would be [Vice Chairman Ajit Jain],” Buffett, 90, told CNBC’s Becky Quick after this weekend’s annual Berkshire shareholders meeting. Both Abel, 59, and Jain, 69, had been seen as being in the running for the top job since they were promoted to vice chairmen of the company in 2018. Buffett told CNBC that age was a determining factor for the board. “They’re both wonderful guys. The likelihood of someone having a 20-year runway though makes a real difference.”
Warren Buffett and Charlie Munger at Berkshire Hathaway’s annual meeting in Los Angeles, California. May 1, 2021.
Gerard Miller | CNBC
Robinhood is promoting gambling-like behavior in the stock market, Buffett said at Berkshire’s annual meeting on Saturday. Robinhood has “become a very significant part of the casino aspect, the casino group, that has joined into the stock market in the last year or year and a half,” Buffett said, adding he was unhappy, for example, to learn how much short-term option activity there was in Apple.
Munger’s disdain for bitcoin has only intensified as the digital asset mounted a record run this year. “Of course I hate the bitcoin success,” he said during a Q&A session at Berkshire’s meeting. “I don’t welcome a currency that’s so useful to kidnappers and extortionists,” Munger added, saying the “whole damn development is disgusting.”
This illustration picture shows a person waiting for an update of Epic Games’ Fortnite on their smartphone in Los Angeles on August 14, 2020.
Chris Delmas | AFP | Getty Images
Apple faces the start of one of its most serious legal threats in recent years. A federal court case, going to trial Monday, was brought by Epic Games, maker of the popular video game Fortnite. Epic wants to topple the so-called walled garden of Apple App Store. Privately held Epic charges that the $2.2 trillion market cap Apple has transformed a once-tiny digital storefront into an illegal monopoly. Apple takes a commission of 15% to 30% on purchases made within apps. Apple denies Epic’s claims.
Website pages from Yahoo! Inc., left, and AOL Inc. are displayed on a computer monitor.
Chris Ratcliffe | Bloomberg | Getty Images
Verizon‘s $9 billion bet on AOL and Yahoo may soon be coming to a close. Verizon is considering the sale of its Verizon Media Group, which houses those assets. The Wall Street Journal first reported on the potential sale, which could be valued at $4 billion to $5 billion. It’s possible a private equity buyer may acquire all of Verizon Media Group. There may be a buyer, or buyers, for various businesses that have never fit Verizon under CEO Hans Vestberg, who has focused the company on expanding 5G wireless service.