Stocks Extend Early Gains; Apple Jumps On Buffett’s Big Buy – Investor’s Business Daily

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Stocks extended their gains, with Apple (AAPL) and Yahoo (YHOO) getting a Warren Buffett bounce, and oil prices rising.

The S&P 500 and Dow Jones industrial average each rose 0.7%, near session highs and regaining their 50-day moving averages after closing below that key ling on Friday for the first time since Feb. 29. The Nasdaq rose 0.9% on the stock market today. Volume was tracking higher across the board vs. the same time Friday.

Oil, steel and gold stocks led the upside. Department stores, telecom and restaurant issues lagged. West Texas Intermediate crude oil rose nearly 3% to $47.56 a barrel, as Goldman Sachs reportedly boosted its forecast for oil to $50 a barrel in the year’s second half. Gold was up more than 1% to $1,286.90 an ounce.

Renowned value investor Warren Buffett made headlines ahead of the opening bell with a report that his Berkshire Hathaway (BRKB) took a nearly 10-million-share stake valued at more than $1 billion in Apple. Shares of the iPhone maker have fallen sharply the past month and are about 30% off their 52-week high. Apple led the Dow industrials early Monday with a 3% pop.

Likewise, Yahoo got a near-3% Buffett lift after the billionaire investor told CNBC he may help finance Quicken Loans founder Dan Gilbert’s bid for the Internet search and content company. Yahoo has climbed back above its 50-day and 200-day moving average lines.

Some Chinese Internets were up, following 0.8% gains by the Hang Seng index and Shanghai composite. NetEase (NTES) jumped 3.5% in heavy volume as it works on the right side of a cup base. Alibaba Group (BABA) rose more than 2% after finding support at its 50-day line.

IBD’s Take: How healthy are shares of NetEase and Alibaba? And how do they stack up vs. rivals? Find out at IBD Stock Checkup

In economic news, the New York Fed’s Empire State manufacturing index fell to -9.02, well below April’s 9.56 reading and economists’ projections for 7.0. Meanwhile, the May NAHB homebuilder survey remained unchanged at 58, slightly below the Econoday forecast of 59.