Major indexes looked past hot inflation data and Fed Chair Jerome Powell’s comments in early trades Tuesday. The Dow Jones Industrial Average rose 0.2% while the S&P 500 and the Nasdaq inched up 0.1% each in the stock market today. GameStop (GME) and AMC Entertainment (AMC) continued to rally amid a revived meme-stock frenzy.
decisions on interest rates impact both the economy and the stock market. IBD News Editor Ed Carson shares how reactions by each can differ and what investors need to know.” data-nosnippet=”true” data-permalink=”https://www.investors.com/ibd-videos/videos/fed-interest-rate-cuts-hikes” jw-video-key=”cReAVOpP” vid-authors=”MEREDITH HEYMAN” vid-cat=”Industry Insights” vid-date=”03/20/2024″ vid-date-tmsp=”1710938202″ vid-dom-id=”9029322-66437f6ee0375″ vid-id=”9029322″ vid-image=”https://10xwealthreport.com/wp-content/uploads/2024/05/echo/cReAVOpP-640×360.jpg” vid-name=”Fed Interest Rate Decisions: Market Influence And Investor Psychology Impact Of Cuts And Hikes” vid-repeat=”1″ vid-top=”false” vid-url=”https://content.jwplatform.com/manifests/cReAVOpP.m3u8″ vid-width=”50″> X
The April Producer Price Index rose 0.5% from the previous month, higher than estimates of 0.3%. On an annual basis, wholesale prices rose 2.2%, in line with Econoday‘s consensus forecast. Core prices also rose 0.5% vs. views of 0.2%.
The yield on the benchmark 10-year Treasury note fell 2 basis points to 4.45%.
Powell, speaking at the Foreign Bankers’ Association in Amsterdam, said the U.S. economy “has been performing very well lately.” Consumer spending and business investment have been strong. Inflation also showed “progress.” The chair also mentioned Tuesday’s PPI was “not hot” but “mixed.”
On Wednesday, the Consumer Price Index is expected to fall slightly to 0.3% in April from March’s 0.4% increase.
Volume on the NYSE and on the Nasdaq was higher compared with the same time on Monday. Advancers outnumbered decliners by 4-to-1 on the New York Stock Exchange and nearly 3-to-1 on the Nasdaq.
The small-cap Russell 2000 fared well with a gain of over 1%, while the Innovator IBD 50 ETF (FFTY) was unchanged.
Dow Jones Stocks
Home Depot (HD) fell modestly after first-quarter earnings were higher than estimates while sales were just a bit lower. Nike (NKE) was the best performer in the Dow today, up 0.7% but meeting resistance at its downward-trending 50-day moving average.
Tech leaders in the index were mixed.
Apple (AAPL) rose while Microsoft (MSFT) fell. Salesforce (CRM) was nearly unchanged while Cisco Systems (CSCO) rose ahead of its third quarter results due Wednesday. All four moved less than 0.5%.
On Holding (ONON) gapped up above the 50-day moving average after first-quarter earnings and sales beat views. Crocs (CROX) rose in sympathy and tried to break out at a buy point of 146.79.
An earnings miss shook Chinese e-commerce giant Alibaba (BABA). Shares had rebounded from the 200-day moving average ahead of fiscal fourth-quarter results but are back below that level, according to IBD MarketSurge.
Meanwhile, Tencent Holdings (TCEHY) jumped nearly 5% after profit surged in its first quarter. In discount retail, Miniso Group (MNSO) fell 8% after it announced results for its March-ended quarter.
It was the worst performer in the IBD MarketSurge Growth 250. Gainers included Celsius (CELH), Sweetgreen (SG) and Guess (GES).
Also in the growth 250, Pure Storage (PSTG) broke out at a buy point of 55.09.
Meme stocks continued to rally after the return of retail investor Keith Gill to social media on Monday. GameStop skyrocketed nearly 100% after Monday’s 74% rally. AMC’s gains were even higher. The movie theater chain climbed as much as 129% in morning trading before paring some gains.
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