Posts tagged S&P 500
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This is big news as it Berkshire Hathaway will be replacing Northern Santa Fe on the S&P 500.
It has been speculated that this may occur, but few were expecting this news this soon. Warren Buffett has been notified by Standard & Poor’s Indexes that Berkshire Hathaway Inc. (NYSE: BRK-B) will replace Burlington Northern Santa Fe (NYSE: BNI) in the S&P 500.
The change is still on a date to be determined.
The total float will have to be calculated out, but this will not likely be the full float nor the full market capitalization of Berkshire Hathaway that will be included in the S&P 500 Index because of the Warren Buffett and Buffett Trust stakes.
Berkshire Hathaway will also join the S&P 100 on a date to be determined. The merger is expected to be completed in February. That is what the recent stock split did for investors. We still think Buffett should consider adopting a similar stock split for the A shares, although at a smaller ratio. The B-shares closed at $68.00 today and shares rose by over 7% to $73.05 on 777,347 after-hours shares as of 5:49 PM EST.
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Markets have been improving as we come near the end of the year. There are a few factors that could be the reason. Christmas spending was better than expected. Real estate sales where better than the previous month.
Many investors are optimistic about the coming months and the markets are reflecting that, but don’t get too comfortable the markets could easily turn back down.
Equities rallied last week almost everywhere in the world, almost giving an upside direction for New Year 2010. There are few important things to note though. I will put my views on the possibility of breakout on upside looking at technical indicators.
Dow Jones Industrial Average:
This most followed index did manage to close above 10500 (weekly closing) which was proving a big resistance so far for almost a month. However, volume does not confirm a breakout but I give it benefit of doubt as last week was short in duration and the day it closed above this level, had half day’s session. However, the daily closing on Dow Futures does not suggest any breakout as the close and high, both were below previous ones. Unless there is clear direction from both the futures as well as index, we should be careful.
S&P 500:
This is the index I follow most and in my opinion its far better to look at S&P 500 chart than that of Dow Jones Industrial Average. The S&P 500 index managed to close higher both on weekly as well as daily time frame. Volume has not confirmed but again this may be due to the shortened week. The S&P 500 Futures has also closed on new year highs both on daily as well as weekly time frame and as of writing this post, it is trading marginally higher near 1123. I guess there can be more upside in coming days. –more
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This is unusual, futures gain strength as the USD drops. Could the futures start showing us what the stock market will do rather than the dollar? This certainly requires more study. I thought these articles could give some insight.
Stock futures are indicating a higher open on Wall Street Wednesday, bouncing back from the previous day’s losses as the U.S. dollar resumes its decline.
An upbeat profit and sales forecast from chip maker Texas Instruments Inc. is also helping to boost futures. The technology giant said late Tuesday that it is seeing an increase in demand for chips used in cell phones and other electronics.
Ahead of the market’s open, Dow Jones industrial average futures rose 39, or 0.4 per cent, to 10,310. Standard & Poor’s 500 index futures gained 5.30, or 0.5 per cent, to 1,095.30, while Nasdaq 100 index futures rose 6.50, or 0.4 per cent, to 1,775. –more
Dueling Futures
We have ourselves a cage match in the stock market today! CNN reports that U.S. markets are “poised for a rebound Wednesday“, and the Associated Press reports this morning that “stock futures rise after sell-off as dollar falls.”
But, today’s dividend futures data for the S&P 500 indicates that we should expect stock prices to fall.
Seeing as we turned out to be right last Thursday, when stock prices rose (even though the value of the U.S. dollar rose as well,) we’ll go with what the dividend futures are telling us as our market prediction for the day. –more
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