US stock futures surged higher early Monday morning as investors prepared for the first day of trading in May.
Dow futures rose 210 points. S&P 500 futures rose 0.5% and Nasdaq 100 futures rose 0.3%.
Berkshire Hathaway shares rose 1% in early trading after the Warren Buffett conglomerate posted a 20% increase in operating income and continued to buy back large quantities of its own shares. Buffett also announced to CNBC that Greg Abel, vice chairman of all non-insurance-related operations, will succeed him when he is no longer responsible.
Economic reopening bets won early trading. Norwegian Cruise Line and Carnival Corp. were both 1% higher in the pre-market. Caterpillar and Bank of America were also higher.
Some tech stocks like Tesla and Netflix were weak in early trading.
Monday marks the first trading day in May. Despite Friday’s stock weakness, the S&P 500 posted its third straight month of earnings in April, adding more than 5% to the index as investors looked to a strong post-pandemic economic rebound and earnings.
The S&P 500 rose 11% over the course of the year. The benchmark closed on Thursday after the results from Apple and Facebook at a record level.
The Dow was up 2.7% last month while the Nasdaq Composite was up 5.4% in April.
“Investors are preparing for another busy week of earnings that ends with a widely watched job report. Given the positive economic and earnings news, the path of least resistance seems higher,” said Jack Ablin, chief investment officer at Cresset Capital CNBC.
Lowe’s, Estee Lauder and ON Semiconductor will be reporting on Monday before the bell.
April manufacturing PMI data is released on Monday at 9:45 a.m. ET, followed by ISM manufacturing at 10 a.m.
The April job report will be published on Friday.
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