The stock market started the week on a sluggish note Monday, with all major indexes biding time in afternoon trading. Meanwhile, Warren Buffett's Berkshire Hathaway underperformed after the holding company reported its third-quarter results over the weekend.
The Dow Jones Industrial Average was relatively flat and the Nasdaq composite climbed 0.2% on the stock market today. The S&P 500 advanced 0.1% while the small-cap Russell 2000 fared the worst, shedding 1.6%. All three major indexes remained above their 50-day moving averages.
Volume fell hard on the New York Stock Exchange and the Nasdaq from Friday's levels at the same time of day.
The Invesco QQQ Trust exchange traded fund, which tracks the Nasdaq 100, trimmed 0.1%. The Innovator IBD 50 ETF shed 0.7%.
Stock Action: Warren Buffett's Stock Falls
Shares of Warren Buffett's Berkshire gave back early morning gains and fell nearly 2% in heavy volume, after the conglomerate reported fiscal third-quarter results that included an operating-profit hike of more than 40%. Its strength came in its insurance underwriting business and from investment income.
Berkshire's Geico auto insurance group showed a profit vs. a loss in the year-ago quarter, after the company raised premiums around 17%. Its underwriting businesses also posted a profit compared with the year before, due to its lower catastrophic losses. Meanwhile, Berkshire's railroad and utilities businesses earnings lagged.
The company's cash on hand rose to a record $157.2 billion, up from $147.4 billion at June 30, with much of it sitting in Treasury bills. Higher short-term interest rates helped boost its interest and investment income by $1.3 billion over the year-ago quarter.
Further, Berkshire bought back $1.1 billion of its stock in the third quarter, for a nine-month total of $7 billion in repurchases.
BRKB stock broke its five-day winning streak, falling below its 50-day moving average after testing it on Friday. Shares are in a newly formed flat base with a 373.34 buy point, according to MarketSmith pattern recognition.
Other Stock Market Movers: Vacation Stock Doubles
Dell Technologies stock rose more than 2% and broke out of a double-bottom base, hitting the 70.77 buy point. Shares of the computer and services company are in the 5% buy zone reaching to 74.31. Its relative strength line hit a 52-week high, as shown by the blue dot on MarketSmith charts.
Desalination operator Consolidated Water broke of a flat base after hitting the 31.85 buy point, but has since pulled back below the buy point. The move adds to Friday's 4.7% rally and lifted shares to a 52-week high on Monday. CWCO's relative strength line also hit a 52-week high.
Hilton Grand Vacations sank more than 7% in heavy trading on news it will acquire Bluegreen Vacations for $1.5 billion, including debt.
Hilton also reported higher-than-expected earnings on lower sales for its third quarter. The hotel and vacation specialist operates timeshares and vacation ownership resorts.
BVH stock exploded over 100% in enormous volume to an all-time high on the news. Conversely, HGV stock is on pace for its largest one-day percentage decrease since June 26, 2020, when it fell 9.73%.
Stock Market Shakers: Energy Stock Leads The S&P 500
Li Auto stock gapped up more than 8% amid a rally by China-based companies. The electric-vehicle maker reclaimed its 50-day line in heavy volume. Shares are in an undefined pattern with a 47.33 buy point, but aggressive investors could use a 43.37 entry point.
Shares of Constellation Energy rallied more than 6% and are on pace for an all-time high on Monday. The natural gas and energy provider handily beat third-quarter earnings expectations, but missed on sales.
CEG stock is extended from a cup-with-handle base and has ridden its 50-day line higher since early May, with several successful tests along the way. CEG stock was the biggest gainer on the S&P 500 on Monday.
Freshpet gapped up more than 18% in huge volume, following the pet food company's smaller-than-expected loss during the third quarter, and higher sales. The stock reclaimed its 50-day and 200-day lines on Monday's move.
Ryanair gapped up more than 3% after the low-cost Irish airline reported higher fiscal second-quarter operating revenue. The company said it expects fiscal 2024 traffic to grow about 9%. Shares reclaimed their 50-day and 200-day lines on the jump.
BioNTech stock advanced nearly 5% in heavy trading after the German drugmaker announced third-quarter profit and sales that were higher than expected. BioNTech partnered with Pfizer on a Covid-19 vaccine.
Ferrari Stock Wins Again
Dish Network tumbled more than 25% after the video services provider reported a surprise loss and revenue miss, as well as a decline in subscribers. In addition, Dish announced that Chief Executive W. Erik Carlson plans to resign on Nov. 12 but will remain on the board until the closing of the merger with satellite communications provider EchoStar. DISH stock is under its 50-day line.
SATS stock slid more than 25% after the satellite company reported lower third-quarter earnings and sales vs. last year's quarter.
IBD 50 retail stock Miniso Group eased from larger gains; it's now up 0.5% and in a consolidating base with a 29.92 buy point. The China-based retail company plans to report September-quarter results on Nov. 21.
Ferrari stock continued its race ahead, adding 0.3% on top of its earnings breakout last week. Shares are in the 5% buy zone of a flat base from a 329.88 buy point. Its relative strength line hit a 52-week high.
Lastly in stock market news, Albemarle sank more than 6%. UBS downgraded the stock to neutral from buy, and Morgan Stanley cut its price target to 90 from 155.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
