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Overnight Markets: Wall Street gains in late surge

Overnight Markets: Wall Street gains in late surge

US stocks gained on Monday, lifted in a late rally as Warren Buffett's Berkshire Hathaway beat earnings estimates and Portugal announced a bailout for Banco Espirito Santo SA.

The Dow Jones industrial average rose 76 points, or 0.46%, to end at 16,569. The S&P 500 gained 14 points, or 0.72%, to 1,939. The Nasdaq Composite added 31 points, or 0.72%, to close at 4,384.

Equities gained yesterday as Portugal’s central bank took control of Banco Espirito Santo, easing concern that the lender’s woes may spread. Espirito Santo will get €4.9 billion ($6.6 billion), the central bank said.

Berkshire Hathaway Inc (BRKa.N) (BRKb.N) gave the S&P 500 its biggest boost, helping it snap a two-day losing streak. The company said late Friday that its second-quarter profit surged 41% to a record, which helped push its Class B shares up 3.1% to end at $129.72.

VeriSign Inc. (VRSN) climbed 2.5%. Buffett raised his stake in the company, which manages a directory of Internet addresses, to 10.4% from 8.2%.

The US-listed shares of Tekmira Pharmaceuticals (TKMR.O) slipped on Nasdaq in a roller-coaster day for the tech-heavy index. The stock finished down 7%. Tekmira was viewed as a possible provider of a treatment for an Ebola virus outbreak in Africa, but then CNN reported a drug from privately held Mapp Biopharmaceutical Inc had helped at least two patients.

Social media stocks performed well, with the Global X Social Media Index ETF (SOCL.O) up 1.6%. Groupon (GRPN.O) shares jumped 8.7%. Facebook (FB.O) shares gained 1.6%.

On the negative side, Michael Kors Holdings Ltd. (KORS) fell 5.9%, the most in the S&P 500, after the company said profitability will decline this year.

In Asia, shares declined on Tuesday in morning trade after a private gauge of China’s services industries fell to a record low and as investors weighed company earnings.

The MSCI Asia Pacific Index slid 0.4% to 147 as of 10:17 a.m. in Hong Kong. Japan’s Topix index declined 0.3%. South Korea’s Kospi index fell 0.6%. Australia’s S&P/ASX 200 Index slid 0.3% and New Zealand’s NZX 50 Index gained 0.2%.

The Hang Seng Index fell 0.1% in Hong Kong, while China’s Shanghai Composite Index dropped 0.2%. Taiwan’s Taiex index retreated 1.4%, while Singapore’s Straits Times Index rose 0.2%.

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