* Berkshire Hathaway shares up after results
* Michael Kors shares reverse premarket move, fall 5.5 pct
* Diamond Offshore weighs on Loews earnings
* Indexes: Dow flat, S&P up 0.2 pct, Nasdaq up 0.3 pct
(Updates prices, adds comment)
By Rodrigo Campos
NEW YORK, Aug 4 U.S. stocks rose in morning
trading on Monday, lifted by earnings including those of Warren
Buffett's Berkshire Hathaway, with gains partly offset by drops
in high-yielding dividend stocks in the utilities sector.
The S&P 500 fell 2.7 percent last week, its biggest
percentage drop since the week through June 1, 2012. Despite the
sharp decline, the benchmark's technical picture was still
bullish, analysts said, giving support to the rebound.
The bailout of Portugal's largest listed lender, Banco
Espirito Santo, supported bank shares. Lisbon agreed to
rescue BES with a $6.6 billion bailout.
"From a technical viewpoint, the market managed on Friday to
hold the lower end of the trading range and the fact we did that
is helping the market out this morning," said Peter Cardillo,
chief market economist at Rockwell Global Capital in New York.
"News from Portugal certainly is a step in the right
direction and after the sharp losses of last week, the market
needs to catch its breath."
Warren Buffett's Berkshire Hathaway Inc
said late Friday second-quarter profit soared 41 percent to a
record high due to substantial investment gains and improved
results in manufacturing, service and retail businesses. The
company's class B shares gained 1.4 percent to $127.57.
The Dow Jones industrial average rose 5.59 points or
0.03 percent, to 16,498.96, the S&P 500 gained 3.16
points or 0.16 percent, to 1,928.31 and the Nasdaq Composite
added 14.48 points or 0.33 percent, to 4,367.12.
Utilities were the worst performing of the S&P's
10 industry sectors, down 1.4 percent. At its session low on
Monday, the index was down 8.8 percent from its intraday record
high set June 30.
Shares of Michael Kors tumbled 6.6 percent to
$76.49. Shares had jumped more than 10 percent before the bell
following results that showed a 43 percent rise in quarterly
revenue, but quickly reversed. The company said it expects
margins to shrink for the year.
Pike Corp soared almost 50 percent to $11.86.
Investment firm Court Square Capital Partners and Pike's Chief
Executive J. Eric Pike, will take the company private in a deal
valued at $12 per share.
Amgen said a late-stage study found that its blood
cancer drug helped patients live significantly longer without
the disease worsening, compared with standard treatment. Amgen
shares gained 1.2 percent to $127.09.
Hotel, energy and financial services Conglomerate Loews Corp
posted a 57 percent drop in quarterly profit on lower
earnings from Diamond Offshore Drilling. Loews shares
slipped 0.4 percent to $42.09 while Diamond fell 0.4 percent to
Diamond was downgraded and its price target was cut by
Deutsche Bank, alongside similar bearish calls on Ocean Rig
, Seadrill, Rowan Cos and others in the
sector. The S&P oil and gas drilling index fell 1.1
(Additional reporting by Chuck Mikolajczak; Editing by
Bernadette Baum and Nick Zieminski)