5 things you should know before the stock market opens on Monday
Here are the top news, trends, and analysis investors need to start their trading day:
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 old Wall Street adage “sell in May, go away” doesn’t seem to materialize on Monday, but it’s a historical trend that investors will watch if May fails. 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, 97, inadvertently revealed who would succeed Warren Buffett as CEO. 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 Becky Quick of CNBC after the annual general meeting in Berkshire this weekend. Both Abel, 59 and Jain, 69, have been in the running for the top spot since being promoted to vice chairman of the company. that age is a deciding factor for the board: “They are 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 Berkshire annual meeting on Saturday. 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 applaud any currency that is so useful to kidnappers and blackmailers,” added Munger, saying, “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’s $ 2.2 trillion market cap turned a once tiny digital business into an illegal monopoly. 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’s $ 9 billion bet on AOL and Yahoo could soon end. Verizon is considering selling its Verizon Media Group, which houses these assets. The Wall Street Journal first reported the potential sale, which could be estimated at $ 4 billion to $ 5 billion. It is possible for a private equity buyer to acquire the entire Verizon Media Group. There may be one or more buyers for various companies who never fit Verizon under CEO Hans Vestberg, who has focused the company on growing the 5G cellular service.
– 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.