Here are five things you must know for Monday, May 7:
1. -- Stock Futures Rise as Oil Tops $70 a Barrel
U.S. stock futures were higher Monday, May 7, as futures for U.S. crude oil climbed above $70 a barrel for the first time since late 2014.
West Texas Intermediate crude was up 1.16% early Monday to $70.53 a barrel as investors were worried Donald Trump will pull out of the Iran nuclear deal, which allowed the country to boost its crude exports. Iran re-emerged as a major oil exporter in 2016 after international sanctions against it were lifted, and Trump has until May 12 to determine whether to extend sanctions, Reuters reported.
Stocks closed up sharply on Friday, May 4, as shares of Apple Inc. (AAPL) - Get Report hit an all-time high and investors looked past a U.S. jobs report that came in below expectations. The Dow rose 332 points, or 1.39%, to finish at 24,262, the S&P 500 gained 1.28% and the Nasdaq rose 1.71%.
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2. -- Berkshire Hathaway Posts First Loss Since 2009
Warren Buffett's conglomerate posted a loss of $1.14 billion for the quarter, the first loss since 2009. The accounting change forced Berkshire to recognize its equity holdings on a mark-to-market basis.
Buffett had warned about the accounting change earlier this year.
The net loss wasn't really representative of what's going on in the business, Buffett said, adding that, "if you look at the figure of operating earnings, which is what we look at, we actually earned a record amount of any quarter we've ever had."
Some other highlights from Berkshire's annual meeting on Saturday, May 5:
- Buffett remains bullish on Wells Fargo & Co. (WFC) - Get Report and CEO Tim Sloan despite its spate of scandals.
- A CEO for Berkshire's healthcare initiatives with JPMorgan & Chase & Co. (JPM) - Get Report and Amazon.com Inc. (AMZN) - Get Report is expected to be announced in a few months.
- Both Buffett and his partner Charlie Munger continue to think valuations on potential targets remain too high.
Everything You Need to Know About Warren Buffett (Watch Video)
3. -- Nestle To Sell Starbucks Coffee in $7.15 Billion Deal
Under the deal, Swiss-based Nestlé has been granted the "perpetual rights to market Starbucks consumer and foodservice products globally, outside of the company's coffee shops," the companies said in a statement.
"This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestlé," said Starbucks CEO Kevin Johnson.
Starbucks said it intends to the proceeds from the deal to "accelerate share buybacks and now expects to return approximately $20 billion in cash to shareholders in the form of share buybacks and dividends through fiscal year 2020." The company also said it expects the transaction to be accretive to earnings per share by the end of fiscal 2021 at the latest.
Starbucks rose 3.1% in premarket trading.
4. -- Highlights of the Earnings Calendar
5. -- 'Avengers: Infinity War' Crosses $1 Billion in Sales in 11 Days
The Marvel Studios film reached the milestone one day earlier than the previous record held by 2015's "Star Wars: The Force Awakens," according to CNN.