Dow Jones Rallies As Yellen Makes Oil Price Pledge; These Warren Buffett Stocks Test Entries
The Dow Jones rose as investors ignored geopolitical concerns, while Janet Yellen promised to stabilize oil prices. Certain stocks owned by Warren Buffett saw an increase in value.
On Monday, the Dow Jones Industrial Average rebounded from losses as investors shrugged off concerns about the conflict between Israel and Hamas. Despite Treasury Secretary Janet Yellen's pledge to control oil prices in light of the Middle East tensions, stocks like SLB, Chevron, and Exxon Mobil saw gains. Defense stocks such as General Dynamics, L3Harris Technologies, and Northrop Grumman also experienced significant movement. Meanwhile, Warren Buffett stocks, including Chevron and Occidental Petroleum, tested new entry points. Although there were few breakout stocks, Cadence Design Systems tested a buy point. The Federal Reserve's reassurances about interest rates helped soothe investors' worries. The Nasdaq and S&P 500 both reversed earlier losses and closed higher, with defense stocks performing well. Small caps also saw gains, with the Russell 2000 rising. Walt Disney was the top performer on the Dow Jones, while Coca-Cola and Procter & Gamble lagged. Despite Yellen's oil price pledge, energy stocks rallied, with SLB, Exxon Mobil, ConocoPhillips, Baker Hughes, and BP all seeing gains. Some Warren Buffett stocks tested entry points, but caution is advised. Defense stocks soared amid geopolitical risks, with General Dynamics, L3Harris Technologies, and Northrop Grumman all experiencing significant gains. Cadence Design Systems tested a buy point, and investors are advised to consider taking advantage of breakouts in the market.