Today’s stock: Dow Jones falls as Warren Buffett’s stock plunges 99%; GameStop steps up in the middle of the Roaring Kitty bet

The Dow Jones Industrial Average continued to lose ground during trading on Monday Berkshire Hathaway (BRKA) and other stocks have restarted after a shutdown due to technical issues. The Nasdaq Composite was able to contain its losses in the stock market today Nvidia (NVDA) appeared on the launch of several artificial intelligence products over the weekend. In the meantime, GameStop (GME), as Reddit investing personality Roaring Kitty revealed a big stake in the meme stock.

X

The Dow lagged the other major indexes as early losses intensified. It lost more than 350 points in recent shares, or 0.9%.

The Nasdaq Composite managed to pare its losses and flirted with break-even. Autodesk ( ADSK ) was the best performer, but early gains faded as it rose nearly 4%. Constellation Energy ( CEG ) lagged behind as it fell more than 5%.

Meanwhile, the S&P 500 fell 0.5%. Paramount Global ( PARA ) was among the S&P’s best performers as it rose nearly 8% on reports of a revised takeover offer from Skydance Media. CNBC reported that the two sides have agreed to terms.

Paramount said Skydance would buy nearly 50 percent of its Class B shares for $15 each. That’s in addition to paying $2 billion for National Amusements, which owns 77 percent of Paramount’s Class A voting stock.

Skydance and its private equity backers RedBird Capital and KKR would end up owning two-thirds of Paramount. Despite the divergence above the other moving averages, shares of Paramount remain below the long-term 200-day line.

The S&P 500 sectors were mostly negative in the stock market today. Only healthcare managed to stay in positive territory. Energy and industry were the worst performing sectors.

Early gains for the Russell 2000 melted away as it fell nearly 1 percent. The Innovator IBD 50 Exchange Traded Fund ( FFTY ) also reversed lower, falling 0.2% on the market today.

Warren Buffett shares ‘fall’ 99%, trading halted briefly

Trading in some shares was halted amid technical problems on the New York Stock Exchange.

Barrick Gold (GOLD) and Buffett’s Berkshire Hathaway were among the affected stocks.

Berkshire’s Class A shares fell 99.9%. Trading was halted with the stock trading for 185.10, compared to Friday’s close of 627.400. Needless to say, such a dramatic decline, if it were in fact correct, would trigger several sell signals. .

Berkshire’s Class B shares were unaffected. They were trading normally, down less than 1%. Outside of Berkshire, Barrick Gold and NuScale Power (SMR) were also affected. The stock now appears to be trading normally.

Today’s stock market: Nvidia stock market appears on the back of new AI products

Nvidia was making progress after Chief Executive Jensen Huang unveiled future AI chips on Sunday. The chip firm advanced more than 3% on Monday afternoon. The Stock Leaderboard is extended over an entry of 922.20.

Huang announced plans for the Blackwell Ultra chip in 2025 and a next-generation Rubin platform for 2026. Nvidia already plans to launch Blackwell AI chips this year.

The product announcements were made on the eve of Computex 2024 in Taiwan. Other key firms are making announcements at the event. Advanced Micro Devices (AMD) CEO Lisa Su laid out an AI roadmap for the next two years and showcased her firm’s latest AI PC processors.

And Qualcomm (QCOM) CEO Cristiano Amon showed off his company’s latest Snapdragon chips for Microsoft Copilot+ computers.

AMD stock reversed, falling more than 3 percent, while Qualcomm also reversed 0.6 percent.

GameStop Soars On Roaring Kitty News

Elsewhere, meme stock mania was back in full force on Monday after influencer Keith Gill — known as Reddit investing personality Roaring Kitty — shared a social media post showing an apparently substantial stake in GameStop.

According to his Reddit post, he owns 5 million shares, or nearly 2% of the shares available to the public. In addition, the trader appears to have earned GameStop call options worth $65.7 million.

Last month, he sent GameStop shares soaring after posting a picture on X of a man in a chair holding a video game console. This was his first post on the platform in three years.

GameStop was off its opening highs but remained up about 30% on the stock market today. Fellow stock memes AMC Entertainment (AMC) increased by more than 13%.

Despite its strong jump, GameStop is a mediocre performer. He has an IBD composite rating of 67 out of 99.

Dow Jones Today: Boeing Stock Rises, CAT Lowest After Whisker

There was mixed action among the 30 Dow Jones components in today’s market.

Boeing (BA) fared best as it rose over 3%. It has now climbed back above its 50-day moving average, MarketSurge data shows.

Merck (MRK) also outperformed by nearly 2%. Apple ( AAPL ) pared early gains but remained up 0.6%.

Caterpillar (CAT) was the worst performer on the Dow Jones today as it fell more than 3%. Dow Inc. (DOW) and Chevron (CVX) followed closely behind as both experienced similar declines.

Fed official sees ‘extended’ rate hold

Minneapolis Fed President Neel Kashkari said he expected interest rates to remain steady for an “extended period of time.”

“The economy is, in the U.S., pretty strong, the labor market is strong, inflation is coming down, and many, many people are deeply dissatisfied with the state of the economy,” he said. “I think because of the high inflation they experienced.”

Kashkari made the remarks on a Financial Times podcast on May 27 ahead of the Federal Open Market Committee’s shutdown period.

Treasury yields extended a decline, however. The 10-year yield fell 11 basis points to 4.41% and the two-year yield fell seven basis points to 4.82%. A slew of jobs data this week could provide more clarity on the rate path going forward.

Meanwhile, the Institute for Supply Management’s manufacturing index fell to 48.7 percent in May from the previous month’s 49.2 percent. This was a three month low. Readings below 50% signal that the manufacturing sector is contracting.

Stock market today: GSK flashes sell signal, GameStop rises

GSK (GSK) issued more sell signals — breaking below its 50-day mark and falling more than 7% below a 43.84 entry — as it fell nearly 9% on heavy volume.

A state court in Delaware has ruled it will allow more than 70,000 cases alleging its heartburn drug Zantac causes cancer to go to trial. It ruled Friday that the plaintiffs’ expert witnesses could present evidence related to the drug, which has been discontinued. GSK is trying to appeal the decision.

Outside the Dow Jones: Stocks close in on entries

Some strong stocks are digging into near-potential buy points. Skyward specialty insurance (SKWD), Ryan Specialty Holdings (RYAN) and Novo Nordisk (NGOs) were among them.

Skyward Specialty Insurance is nearing a mid-fixed base buy point of 38.64. Overall performance remains strong, as reflected in the stock’s IBD Composite Rating of 98. Skyward is in the top 11% of issues in terms of price performance over the past 12 months.

Ryan Specialty Holdings was nearing a 56-handle entry on the stock market today, MarketSurge data shows. This is a first stage model, a plus. The stock has a near perfect EPS rating of 98 out of 99. Analysts see earnings rising 27% this year.

Novo Nordisk has formed a handle base with a potential entry point of 137.22. Both price and earnings performance are very strong. But the basis is the late stage, which carries a higher risk.

The stock is a member of the IBD Leaderboard list of top stocks.

Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more growth stock analysis.

YOU MAY ALSO LIKE:

Stock market forecast: AI investments and four other predictions

These are the five best stocks to buy and watch right now

Join IBD Live every morning for stock tips before the open

This is the ultimate Warren Buffett stock, but should you buy it?

This Is The Ultimate Donald Trump Stock: Is DJT A Buy Amid These Legal Troubles?