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Dow Jones Industrial Average (DJIA) Today, August 4, 2014: U.S. markets roared back on Monday, boosted by strong quarterly results from Berkshire Hathaway (NYSE: BRK.A). The company's B-shares (NYSE: BRK.B) were up 3.25% on the day.
The S&P 500 Index climbed today after the market lost roughly 2.7% last week. The markets also reacted positively to news that the Portuguese government will offer nearly $6.6 billion (4.9 billion euros) in emergency lending to stave off the collapse of its largest financial institution, Banco Espirito Santo. The Chicago Board Options Exchange Volatility Index (VIX), which gauges investment fear, slipped more than 12% on the day.
Here's the scorecard from today's trading session:
Dow: 16,569.28, +75.91 (+0.46%)
Nasdaq: 4,383.89, +31.25 (+0.72%)
S&P 500: 1,938.99, + 13.84 (+0.72%)
Now, here are the top stories from today:
- Daily Deals: Shares of Groupon Inc. (Nasdaq: GRPN) surged more than 8% the day before the company will report quarterly earnings. Multiple analysts believe that the company will at least meet quarterly revenue estimates of $762 million.
- Curing Cancer: Shares of Amgen Inc. (Nasdaq: AMGN) were up nearly 3% after the company said its injectable blood cancer drug Kyprolis had significantly extended late-stage patients' lives without worsening their conditions. The drug was central to Amgen's $10 billion acquisition of Onyx Pharmaceuticals in 2013.
- Ebola Treatment: Shares of Tekmira Pharmaceuticals Corp. (Nasdaq: TKMR) slipped by 7% on the day after CNN reported that another company would be first to offer its Ebola treatment to victims in Africa. Shares of Tekmira have soared nearly 30% in the last five trading sessions as concerns about a global Ebola outbreak continue to dominate headlines. For an in-depth look at the race to attain U.S. Food and Drug Administration approval for an Ebola virus treatment – and the name of the competing biotech that seized the spotlight today – go here…
- Leadership: In a recent interview with The Economist, U.S. President Barack Obama suggested that leaders at U.S. corporations should stop complaining about regulation. Over the past six years, the U.S. economy has struggled to get moving again, and regulatory efforts like the Dodd-Frank Act, the Affordable Healthcare Act, and new rules set by the Environmental Protection Agency have faced increased scrutiny from businesses. While highly critical of the corporate culture in America, the president has continually defended institutions like the U.S. Import-Export Bank that engage in corporate welfare.
- Auto Loan Problems: The U.S. Department of Justice has subpoenaed General Motors Co. (NYSE: GM) over concerns regarding subprime auto loans the firm's financial arm offered to customers since 2007. Concerns are growing that the auto industry is fueling another credit bubble. Shares of GM were up a little more than 0.5% on the day.
- Oil Glut: German megabank Deutsche Bank AG (NYSE: DB) downgraded offshore drilling operators this morning, citing a glut in the oil supply. Shares of Transocean Ltd. (NYSE: RIG) slipped more than 2%, while Hercules Offshore Inc. (Nasdaq: HERO) lost 1%.
Now our experts share some of the most important investment moves to make based on today's market trading – for Money Morning Members only:
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.