Market Recap for 16th May 2016 – Can Warren Buffet really move the market?

By Markus Heitkoetter

Stocks started the week with a bang!

After the open, stocks rallied the entire day.

Considering that it has been a lousy couple of weeks, it was a promising start with the major indices finishing the day with a 1.0% gains across the board.

There were really 2 catalysts for today’s move:

  1. Warren Buffet – A rally in Apple (AAPL) was sparked by news that Warren Buffet’s Berkshire Hathaway (BRK.B) acquired 9.8 million shares of AAPL. The position translates into a $1.1 billion dollar stake in the company, and was just what traders needed to hear. Coming off of the lowest levels since 2014, Apple (AAPL) jumped 3.7% and ended the day at $93.88. This was the best close for AAPL in about 2 weeks, and the rally helped the NASDAQ led the major indices higher.
  2. Crude Oil – Crude Oil (CL) was up an impressive 3.3% today. With a close of $47.72, CL ended the day with its best close in 2016.

Here’s where the major indices ended the day:

The S&P finished with a 1.0% gain. Up 20 points, the S&P ended at 2,067.

The DOW ended 1.0% higher. Adding 175 points, the DOW closed at 17,711.

The NASDAQ was up 1.2%. With a 58 point gain, the NASDAQ finished at 4,775.

Today Pfizer (PFE) and pharmaceutical company Anacor (ANAC) also made headlines. ANAC jumped 57% after PFE said it would buy the company. PFE ended the day 0.6% higher.

This weeks key economic reports include Building Permits and CPI Data at 8:30am ET.

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