The Dow Is Rallying as Warren Buffett Buys the Stock Market Dip, Crypto Coins News
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Optimism emerged on Wall Street as stock market volatility finally dropped.
The Dow Jones rallied back from three-year lows as billionaires like Warren Buffett and Carl Icahn started buying the dip.
Dow bulls must still endure horrendous economic data over the coming weeks.
The Dow Jones Industrial Average (DJIA) crept toward gains on Thursday as stock market bulls enjoyed a rare day of lower volatility.
Billionaire investors are eyeing China and starting to taste opportunity as the US government begins to get its coronavirus outbreak under control.
Dow Jones Rallies as Volatility Drop Gives Wall Street a Breather
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After an early morning dip, the Dow Jones rallied back above 25, 03. | Source: Yahoo Finance
Among the three major stock market indices , the Nasdaq was comfortably the most impressive:
The Dow rallied
(points or 1.) (% to) , .
The S&P (climbed 1.) (% to 2, .
The Nasdaq jumped 4. (% to 7,) . 11.
In the commodity sector, the oil price enjoyed a phenomenal rally, climbing (% to $) per barrel as the risk environment improved and the massive rally in the US dollar slowed.
The price of gold fell slightly as volatility eased in the stock market, trading close to flat on the day. Digital asset bitcoin exploded higher as a 22% rally carried BTC / USD back through the $ 6, (handle.
Billionaires Carl Icahn and Warren Buffett Are Buying the Stock Market Dip
Buffett’s Berkshire Hathaway Class A stock has performed only slightly better than the Dow Jones this year. Still, with a significant amount of dollars at his disposal , it is only a matter of time before the company looks at a huge acquisition.
Some have speculated that troubled Dow giant Boeing might be a potential Berkshire target , particularly given Buffett’s love of monopolistic businesses.
ABN AMRO: COVID – Has Halved Air Travel Since
As analysts try to get ahead of what will likely be an . (extremely miserable set of economic data) in the United States, tracking key metrics of business activity is one method to gauge the fallout from the coronavirus.
Economist Bill Diviney at ABN AMRO sees Many of the same negative dynamics in the U.S. economy that plagued China over the last few months.
For the US, we are now tracking air passenger throughput at airports, coal production, and railroad freight transport – among others.
All show markedly lower rates of activity than in the same periods of previous years, with the most striking change visible so far coming in air travel; here, TSA data shows that as of 21 March, passenger numbers were already half that of the equivalent levels, having steadily declined from (% of) levels at the beginning of March.
Such a conservative display from the US consumer is not good news for the Dow Jones. Healthy household spending is widely considered to be the (foundation of the economy) (as) manufacturing slides deeper into recession.
Unemployment spikes are anticipated around the world
, with the principal question for Wall Street being how long the shutdown will last.
Dow Stocks: Apple Moves Sideways But Boeing Slides
After dumping a significant chunk of its free cash flow on buybacks, future restrictions on share repurchases will likely weigh heavily on Boeing’s ability to rally. Donald Trump has already announced he supports buyback. restrictions .
Big oil enjoyed a brighter day as crude rallied, while defensive coronavirus play Walgreens suffered an 20% slide.
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