Stocks rose in the first hour of trading Wednesday, with major indexes posting gains. After the inflation statistics came out as expected.Meanwhile, the meme stock party seemed to be over. game stop (GME) and AMC Entertainment (AMC), gave back much of the stock market’s recent gains today.
X
The Dow Jones Industrial Average rose 0.5% in Wednesday trading. The S&P 500 rose 0.7% and the Nasdaq rose 0.8%. As noted in Tuesday’s Big Picture column, the Nasdaq set a record with its closing price on Tuesday. On this day, the stock market surpassed the intraday high of 16,538 set on March 21st.
The small-cap Russell 2000 gained 0.6%.
Volume rose on the Nasdaq during Tuesday’s trading hours but fell on the New York Stock Exchange.
Among exchange-traded funds (ETFs), Invesco QQQ Trust (QQQ) soared 0.9%. Innovators IBD 50 ETF (FFTY) rose 1.4% on the stock market today.
Meanwhile, the benchmark 10-year US Treasury yield fell to 4.38%. West Texas Intermediate crude oil also fell to $76.93 per barrel.
Current stock market: Inflation, retail sales subdued
The Ministry of Labor announced that the consumer price index in April rose 0.3% from the previous month, as expected, and the annual rate of increase of 3.4% met Econoday’s forecast. The monthly and annual readings improved from March’s 0.4% month-on-month rise and 3.5% annualized rise.
The monthly core CPI measure, which excludes food and energy, rose 0.3% and 3.6% year over year, both meeting expectations.
Meanwhile, retail sales in April were flat compared to expectations of a 0.4% increase. Excluding cars and gasoline, the figure fell by 0.1% versus an expected 0.1% increase.
Finally, the Empire State Manufacturing Index for May came in at -15.6, compared to the expected -10. A number below zero indicates a worsening economic situation in New York State. The results were compiled from a survey of 200 manufacturing executives.
GameStop, AMC plunge after whirlwind rally
Meme stock GameStop fell about 30% in recent heavy trading after a two-day rally. The stock reached a high of 64.83 during Tuesday’s explosive move, but has returned to around 41.78 in recent trading.
Keith Gill, who sparked a rise in meme stocks during the pandemic, returned to social media for the first time in three years, drawing investors’ attention.
Similarly, fellow meme stock AMC Entertainment fell about 25% in heavy trading after two days of volatile activity that saw it post big gains.
On Wednesday, AMC announced it would issue approximately 23.3 million shares of its common stock in exchange for $163.9 million in debt maturing in 2026. AMC and GameStop temporarily halted trading Wednesday morning due to volatility.
Today’s stock market: Monday.com soars
Monday.com (MNDY) soared nearly 20% in a wild move after the company beat first-quarter profit and revenue estimates. The Israel-based software applications company also released second-quarter and full-year revenue forecasts that beat analyst expectations.
The stock regained its 200-day moving average and 50-day moving average on Wednesday.
New Holdings (NU) soared nearly 7% after the Brazilian banking platform operator reported first-quarter results with better-than-expected sales. Quarterly earnings were 8 cents per share, up 164% from 3 cents a year earlier. Sales growth he accelerated to 69%. The stock price is consolidating, with the official buy point at 12.38.
make my lip (MMYT) rose 2.4% after the company reported better-than-expected fourth-quarter earnings and revenue. MakeMyTrip stock is listed on Leaderboard Watchlist.
Dell Technologies DELL soared more than 7% on the stock market today after Morgan Stanley raised its price target to 152 from 128 and maintained an overweight rating on the computer maker and software developer.
home builder toll brothers (TOL) gapped up from a cup-with-handle base with 128.75 buy points after Wells Fargo raised its price target to 150 from 142 and maintained an overweight rating.
For more stock market news on X/Twitter, follow Kimberly Koenig @IBD_KKoenig.
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