US Stocks Drift Near Records as Oil Prices Rise Amid Hormuz Uncertainty
The US stock market is hovering near its all-time high on Monday as oil prices rise due to uncertainty about when the Strait of Hormuz will reopen. The S&P 500 slipped 0.1% from its record set on Friday, with the Dow Jones Industrial Average down 85 points or 0.2%. Meanwhile, the Nasdaq composite fell 0.2%. Earnings per share for companies in the S&P 500 are on track to be 50% higher than a year ago, according to FactSet.
Berkshire Hathaway's strong profit report and investment strategy have boosted its stock by 2.1%. The company has been known for buying stocks at what it considers low prices. However, some critics argue that US stocks are too expensive. Intel weighed on the market with a 4% fall after announcing plans to sell $15 billion of its stock, which would dilute existing investors' ownership stakes.
In contrast, companies benefiting from buyouts have seen significant gains. MarineMax jumped 45.6% after agreeing to be sold for $1.5 billion in cash to a Blackstone portfolio company. Varex Imaging leaped 48.2% after Teledyne Technologies agreed to purchase the X-ray imaging components maker for $18.90 per share.