5 things to know before the stock market opens Monday, May 3
Here are the top news, trends, and analysis investors need to get their trading day started:
1. ‘Sell in May, move away’ does not occur on the first day of trading
Traders on the floor of the New York Stock Exchange.
Dow futures rose 200 points on the first day of trading in May. The 30-stock average fell 185 points, or 0.5%, on Friday but ended April with a monthly gain of 2.7%. The S&P 500 and Nasdaq underperformed the Dow on Friday, but both gained more than 5% throughout April. The Wall Street adage “sell in May, go away” doesn’t seem to materialize on Monday, but it’s a historic trend that investors will watch as May plays out. The stocks associated with Covid’s economic comeback were higher in the pre-market, including Norwegian Cruise Line and Carnival, as well as the 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
Berkshire Hathaway’s Charlie Munger inadvertently revealed who would succeed Warren Buffett as CEO. When asked on Saturday whether the company would eventually become too complex to manage, the 97-year-old Berkshire vice chairman said, “Greg will keep the culture.”
CNBC confirms it is Vice Chairman Greg Abel. “If anything happened to Greg tonight, it would be so [Vice Chairman Ajit Jain]”Buffett, 90, said CNBC’s Becky Quick after the annual general meeting in Berkshire this weekend. Abel, 59, and Jain, 69, have been in the running for the top spot since they were promoted to vice chairman of the company in 2000.” 2018.
Buffett told CNBC that age is a big factor on the board. “They’re both wonderful guys. However, the likelihood of someone having a 20 year old runway makes a real difference.”
3. Buffett slams Robinhood; Munger calls Bitcoin “disgusting”
Warren Buffett and Charlie Munger at the Berkshire Hathaway Annual Meeting in Los Angeles, California. May 1, 2021.
Gerard Miller | CNBC
Robinhood encourages playful behavior in the stock market, Buffett said at the annual meeting in Berkshire. Robinhood has “become a very important part of the casino aspect, the casino group that has joined the stock market for the past year and a half,” said Buffett, adding that, for example, he was unhappy with how much he learned at short notice There was option activity in Apple.
Munger’s disdain for Bitcoin only intensified when the digital asset hit a record run this year. “Of course I hate Bitcoin success,” he said during a question and answer session at Berkshire’s meeting. “I don’t welcome any currency that is so useful to kidnappers and blackmailers,” added Munger, and said, “the whole damn thing is disgusting.”
4. Apple’s App Store is brought to justice to threaten the so-called walled garden
This illustration image shows a person waiting for an update from Epic Games’ Fortnite on their smartphone in Los Angeles on August 14, 2020.
Chris Delmas | AFP | Getty Images
Apple is about to embark on one of its most serious legal threats in recent years. A federal court on trial Monday has been brought by Epic Games, the maker of the popular video game Fortnite. Epic wants to overthrow the so-called walled garden of the Apple App Store. Privately owned Epic accuses Apple of turning a $ 2.2 trillion market cap into an illegal monopoly on what was once a tiny digital storefront. Apple charges 15% to 30% commission on in-app purchases. Apple denies Epic’s claims.
5. Verizon is considering selling the remains of AOL and Yahoo
Yahoo! Inc., left, and AOL Inc. are displayed on a computer monitor.
Chris Ratcliffe | Bloomberg | Getty Images
Verizon will sell its media group to private equity firm Apollo Global Management for $ 5 billion, the company said on Monday. The sale will allow Verizon to outsource real estate from the previous Internet empires of AOL and Yahoo. Verizon will retain a 10% stake in the assets, which will only be renamed Yahoo. Verizon bought AOL for $ 4.4 billion in 2015 and Yahoo for $ 4.5 billion in 2017. With the sale by Verizon, the online media brands under the former Yahoo and AOL umbrella and AOL umbrella companies – such as TechCrunch, Yahoo Finance and Engadget – will go to Apollo.
– The Associated Press contributed to this report. Follow all market action like a pro on CNBC Pro. With CNBC’s coronavirus coverage, you’ll get the latest information on the pandemic.