Stock Market News: Berkshire Sinks Despite Buffett Optimism; Gilead Rises on Coronavirus Hopes
The stock market dove on Monday morning, reacting negatively to news that the COVID-19 outbreak saw a considerable increase in new cases in South Korea and Italy over the weekend. The spread of the coronavirus is raising fears that the outbreak could have much longer-term impacts on the global economy than many currently expect. Stocks in industries most directly affected by the outbreak, such as airlines and leisure companies, saw some of the biggest hits. As of 11 a.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 839 points to 28,153. The S&P 500 (SNPINDEX: ^GSPC) fell 91 points to 3,246, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was off 309 points to 9,267.
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) released its annual letter to shareholders over the weekend, and the stock wasn't able to escape the day's declines for the overall market despite some positive comments from CEO Warren Buffett. Meanwhile, Gilead Sciences (NASDAQ: GILD) saw significant gains, as some investors see the biotech giant as a possible beneficiary from the coronavirus outbreak based on some preliminary reports.
Shares of Berkshire Hathaway were down about 2.5% Monday morning, in line with the overall market's declines. Investors got a mixed bag from the insurance giant's fourth-quarter financial results, but most of the shareholders who paid closest attention to their letter from CEO Warren Buffett seemed satisfied with where the company is right now.
Source Fool.com
