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Berkshire Hathaway ( BRK/A ) falls after Buffett to step down as CEO

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US service sector picks up in April

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Skechers jumps after $9 billion take-private deal

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Indexes: Dow up 0.25%, S&P 500 down 0.17%, Nasdaq off

0.22%

(Updates to afternoon US trading)

By Chuck Mikolajczak

NEW YORK, May 5 (Reuters) - The S&P 500 and the Nasdaq

fell modestly on Monday as investors assessed U.S. President

Donald Trump's latest tariff announcement ahead of the Federal

Reserve's monetary policy decision later this week.

On Sunday, Trump announced a 100% tariff on movies produced

outside the U.S. but provided no details on how such levies

would be implemented.

Stocks have been volatile since Trump announced his first

round of tariffs on April 2, with the S&P 500 initially dropping

nearly 15%, only to stabilize and climb for the last nine

straight sessions, its longest streak since 2004.

On Monday, Treasury Secretary Scott Bessent said Trump's

tariff, tax-cut and deregulation agenda would work together to

drive long-term investment to the U.S., adding markets could

overcome any short-term turbulence.

"Nine up days in the S&P 500 is hard to maintain," said

Art Hogan, chief market strategist at B Riley Wealth in Boston.

"We are starting to price in that eventuality of deals

being announced, but we're running out of daylight on that

because every week that goes by that we don't start cutting

deals we're doing economic damage."

The Dow Jones Industrial Average rose 104.18

points, or 0.25%, to 41,422.35. The S&P 500 lost 9.60

points, or 0.17%, at 5,677.07 and the Nasdaq Composite

fell 39.60 points, or 0.22%, to 17,938.13.

The Dow was on track for its tenth straight winning session,

which would mark its longest since a 13-session run in July

2023.

Several movie and television production pared losses

after falling on Trump's announcement.

Netflix ( NFLX ) fell 1.5%, on track to snap an 11-session

winning streak, while Amazon.com ( AMZN ) was down 1.5%.

Paramount Global ( PARAA ) shed 1.1%.

Energy was down 1.5%, the worst performer of the 11

major S&P sectors, after OPEC+ decided to speed up its output

hikes, causing concerns about more supply as demand remains

uncertain.

Class B shares of Berkshire Hathaway ( BRK/A ) were down

4.3% after Warren Buffett said he will step down as CEO of the

conglomerate.

On the economic front, the Institute for Supply Management's

(ISM) survey showed the services sector's growth picked up in

April, while a measure of prices paid by businesses for

materials and services raced to the highest level in more than

two years as the tariffs trickle down to price tags.

Investors will closely eye the Fed's policy announcement on

Wednesday, in which the central bank is largely expected to keep

interest rates unchanged. Commentary from Fed Chair Jerome

Powell will be scrutinized for signs of when the Fed will adjust

monetary policy.

Markets are pricing in a total of 73 points of rate cuts by

the Fed for 2025, with the first easing of at least 25 basis

points likely at the central bank's July meeting, according to

LSEG data.

Investors are also concerned about how tariffs may affect

corporate profitability. Tyson Foods ( TSN ) tumbled 7.5% after

the meat packer missed quarterly revenue expectations.

However, Skechers jumped nearly 25% after the

footwear maker agreed to be taken private by 3G Capital in a

$9.4 billion deal.

Declining issues outnumbered advancers by a 1.16-to-1 ratio

on the NYSE and by a 1.18-to-1 ratio on the Nasdaq.

The S&P 500 posted nine new 52-week highs and three new

lows, while the Nasdaq Composite recorded 50 new highs and 45

new lows.