Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average and S&P 500 finished higher for the third straight day.
- Even with its big jump on Monday, the Dow remains more than 900 points from its all-time high set on Jan. 26.
- Federal Reserve Chairman Jerome Powell on Tuesday will deliver his first testimony before Congress since he took over from Janet Yellen.
Wall Street Overview
Stocks finished higher on Monday, Feb. 26, as investors extended last week's global equity rally amid stabilizing bond yields.
Wall Street was prepping for the first Humphrey Hawkins testimony of newly appointed Federal Reserve Chairman Jerome Powell before House and Senate committees on Tuesday, Feb. 27, and Thursday, March 1.
The benchmark U.S. 10-year Treasury note traded at 2.857% on Monday; it has stabilized around 2.9% over the past few weeks.
St. Louis Federal Reserve Bank President James Bullard said Monday that he is skeptical that the 10-year Treasury yield will move above 3%.
Stocks on Friday, Feb. 23, finished higher led by the technology sector and banks.
The Dow Jones Industrial Average rose 347 points, or 1.4%, to 25,309, the S&P 500 gained 1.6% and the Nasdaq increased 1.8%. For the week, the Dow rose 0.36%, the S&P 500 gained 0.55% and the Nasdaq jumped 1.35%.
Warren Buffett's Berkshire Hathaway Inc. (BRK.A) (BRK.B) said fourth-quarter profit more than quadrupled as it received a $29 billion boost from the new tax law, offsetting any weakness in the company's businesses.
Berkshire said it earned $32.6 billion, or $13.19 per Class B share, in the fourth quarter because of the tax law changes. A year earlier, the company earned $6.3 billion, or $2.55 per B share.
In an appearance Monday on CNBC, Buffett said that the Tax Cuts and Jobs Act represented a "huge tailwind" for American business. "It certainly means corporations will pay quite a bit less in tax."
Berkshire's class B shares rose 3.9%.
Qualcomm Inc. (QCOM) on Monday appeared to offer up a way forward for Broadcom Ltd. (AVGO) to complete its hostile $79-a-share bid for the chipmaker, noting that the two sides had made progress on regulatory and deal certainty issues.
Specifically, Qualcomm Chairman Paul Jacobs sent a letter to Broadcom CEO Hock Tan suggesting that a second meeting the two sides held on Friday, Feb. 23, led to further progress toward a possible negotiated transaction and that its board encourages Broadcom to enter into mutual due diligence and price negotiations.
Dean Foods Co. (DF) tumbled 13% after fourth-quarter earnings came in below forecasts and the company provided 2018 guidance that disappointed Wall Street.
Shares of Amazon.com Inc. (AMZN) rose 1.4% to $1,518.24. Earlier in the session the stock set a record high of $1,522.84.