Stock Market Fades; Warren Buffett Buys Insurer; Boeing Drops After Plane Crash

After enjoying the best week since November 2020, the stock market gave back some gains Monday morning. Warren Buffett’s Berkshire Hathaway (BRKB) announced a major deal, while Boeing (BA) shares slid after a plane crash in China.


Stock market indexes opened higher. But the Nasdaq composite slid 0.7% around 10 a.m. ET. The S&P 500 was down 0.2%. Volume fell on the Nasdaq and NYSE compared with the same time on Friday.

The Dow Jones Industrial Average gave back 0.3%. Boeing fell 5.5% in heavy trading after a 737-800 plane operated by China Eastern Airlines crashed into a mountain area of the Guangxi region. There was no immediate word on casualties. The plane was carrying 132 people. Broadcast footage showed smoke from the crash site.

The plane is not the 737-Max model that was grounded for many months after two deadly crashes. Yet, it’s another cloud on Boeing’s commercial plane business. The stock this month had been rebounding from a November 2020 low.

Most S&P sectors rose, led by energy. Energy Select Sector SPDR (XLE) rose 3% to extend a rebound. The materials sector rose 1%. Technology and internet stocks lagged.

Oil Climbs, Buffett Buys Alleghany

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The price of U.S. crude oil jumped 4.4% to $109.31 a barrel. Last week, oil fell to around $95, and started to rebound from that level.

Berkshire Hathaway (BRKB) rose 1.8% after the company announced it agreed to acquire insurer Alleghany (Y) in a deal valued at $11.6 billion. Berkshire — billionaire Warren Buffett’s investment firm — said it is paying $848.02 a share in cash. That’s a 25% premium to Alleghany’s closing price on Friday.

Shares of Alleghany, which has expanded from property and casualty insurance to noninsurance businesses, soared 25% in huge volume.

Innovator IBD 50…


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