5 things to know before the market opens on Monday, May 3 – fr

5 things to know before the market opens on Monday, May 3 – fr

Here are the most important news, trends and analysis that investors need to start their trading day:

1. “Sell in May, Go” does not materialize on day one of trading

Traders on the floor of the New York Stock Exchange.
Source: NYSE

Dow futures jumped 200 points on the first trading day in May. The 30-stock average fell 185 points, or 0.5%, on Friday, but still closed April with a monthly gain of 2.7%. The S&P 500 and Nasdaq did worse than the Dow on Friday, but each turned into gains of more than 5% for the entire month of April. The Wall Street adage, “sell in May, go,” doesn’t seem to materialize on Monday, but it’s a historic trend that investors will be watching as May rolls around. Inventories related to Covid’s economic recovery were higher in the pre-market, including Norwegian Cruise Line and Carnival and major US airlines.

2. When Warren Buffett is no longer CEO of Berkshire, Greg Abel will succeed him

Greg Abel at the Berkshire Hathaway Annual Meeting in Los Angeles, California. May 1, 2021.

Gerard Miller | CNBC

Charlie Munger of Berkshire Hathaway has inadvertently revealed who will succeed Warren Buffett as CEO. In response to a question on Saturday whether the business would ultimately be too complex to run, the Berkshire vice-chairman, 97, said: “Greg will keep the culture. “

CNBC confirms it would be Vice President Greg Abel. “If, God forbid, anything happened to Greg tonight then it would be [Vice Chairman Ajit Jain]Buffett, 90, told CNBC’s Becky Quick after Berkshire’s annual meeting of shareholders this weekend. Abel, 59, and Jain, 69, were considered vying for the top job since being promoted to vice presidents of the company in 2018.

Buffett told CNBC that age was a determining factor for the board. “They are both great guys. The likelihood of someone having a 20-year-old lead makes a real difference, however. “

3. Buffett slams Robinhood; Munger calls bitcoin ‘disgusting’

Warren Buffett and Charlie Munger at the Berkshire Hathaway Annual Reunion in Los Angeles, California. May 1, 2021.

Gerard Miller | CNBC

Robinhood promotes gambling-like behavior in the stock market, Buffett said at the Berkshire annual meeting. Robinhood has “become a very important part of the casino aspect, the casino group, which has joined the stock market in the last year or a half,” Buffett said, adding he was unhappy. , for example, to learn just how much short-term options activity there was in Apple.

Munger’s contempt for bitcoin has only intensified as digital assets hit a record high this year. “Of course, I hate the success of bitcoin,” he said in a question-and-answer session at the Berkshire meeting. “I am not in favor of a currency so useful to kidnappers and extortionists,” added Munger, saying “this whole development is disgusting.”

4. Apple’s App Store is put to the test, threatening the so-called walled garden

This illustrative image shows a person waiting for a Fortnite update from Epic Games on their smartphone in Los Angeles on August 14, 2020.

Chris Delmas | AFP | Getty Images

Apple is facing the start of one of its most serious legal threats in recent years. A case in federal court, which will be tried on Monday, has been brought by Epic Games, the creator of the famous Fortnite video game. Epic wants to overthrow the so-called walled garden of the Apple App Store. Epic, a private company, claims that Apple’s $ 2.2 trillion market cap has turned a once tiny digital storefront into an illegal monopoly. Apple takes a 15% to 30% commission on in-app purchases. Apple denies Epic’s claims.

5. Verizon plans to sell leftover AOL and Yahoo

Yahoo! Inc., left, and AOL Inc. appear on a computer screen.

Chris Ratcliffe | Bloomberg | Getty Images

Verizon will sell its media group to private equity firm Apollo Global Management for $ 5 billion, the companies said on Monday. The sale allows Verizon to offload properties from the former Internet empires of AOL and Yahoo. Verizon will retain a 10% stake in the assets, which will be renamed only Yahoo. Verizon bought AOL in 2015 for $ 4.4 billion and Yahoo in 2017 for $ 4.5 billion. The sale by Verizon will see online media brands under the old Yahoo and AOL umbrellas – such as TechCrunch, Yahoo Finance, and Engadget – go to Apollo.

– The Associated Press contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest pandemic news with CNBC Coronavirus Coverage.


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