Wall Street snaps 2-day slump
Wall Street bounced back in a late-day rally Monday. Leading the charge: energy shares spurred by rising oil prices and tech stocks known as the FAANGs. Those gains outweighed concerns over a dispute between the U.S. and China over the origins of the global pandemic and downbeat sentiment from the annual meeting of Warren Buffett's Berkshire Hathaway. The Nasdaq was the day's biggest winner, gaining more than 1%. The Dow rose a fraction, and the S&P 500 added four-tenths percent.
SMH Group CEO George Ball warns it's too late for investors to pile into the FAANG stocks, short for Facebook, Amazon, Apple, Netflix and Google-owner Alphabet:
SOUNDBITE: GEORGE BALL, CEO, SMH GROUP (ENGLISH) SAYING:
"Not today, not tomorrow. But my sense if they are in something of a bubble phase. They're great companies. They've got lots of cash. They're earning money. They're growing. But at some point, enough is enough."
Among the day's biggest movers: airline stocks. Shares of Delta Air Lines, American Airlines, Southwest and United sank. Warren Buffett said "the world has changed" for the aviation industry.
Shares of Buffett's Berkshire Hathaway fell, too. The conglomerate that owns everything from insurer GEICO to chocolatier See's Candies lost nearly $50 billion in the latest quarter.
Tyson Foods tumbled. The meat processor's earnings and revenue fell short of Wall Street's estimates, and the company said the health crisis will continue to slow production and idle plants.
