Dow Adds To Winning Streak; GameStop Stock Soars

The major stock indexes posted modest gains Monday morning ahead of inflation data out later this week. Original meme stock GameStop (GME) doubled in the stock market today, after an influential meme stock trader posted his first tweet in several years.

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The Dow Jones Industrial Average tried to add to a seven-day winning streak, up 0.2%. The S&P 500 edged higher 0.1%, while the Nasdaq added 0.2%. The small-cap Russell 2000 outperformed the major indexes and increased 1%.

Volume fell on the Nasdaq and rose on the New York Stock Exchange vs. the same time in Friday’s session.

Among exchange traded funds, Invesco QQQ Trust (QQQ) clawed up 0.3%. The Innovator IBD 50 ETF (FFTY) was flat 0.1% on the stock market today.

Meanwhile, the benchmark 10-year Treasury yield dipped to 4.47%. And West Texas intermediate crude oil edged higher to $78.21 a barrel.

Investors will be closely following Tuesday’s April Producer Price Index. On Wednesday eyes will be on April’s Consumer Price Index data and April retail sales. Headline CPI is expected to rise 3.4% year over year while the core reading, which strips out food and energy, is expected to increase 3.6%.

GameStop Stock Is Back

Meme stock GameStop trimmed gains after it gapped up around 70% in huge volume on buzz that Keith Gill, the investor known as Roaring Kitty on X, posted his first tweet in nearly three years. Gill started the stock’s frenzied moves in 2020 and 2021 with the stock experiencing a short squeeze, sending shares rocketing. GameStop on Friday tried to top a cup base with an 18.59 buy point and is now extended from the buy zone.

GameStop stock has a mediocre 59 IBD Composite Rating, mainly because the stock has been in a downtrend since 2021. FactSet’s consensus estimates are for losses over the next four quarters after two recent profitable quarters. The company is expected to report its fiscal first-quarter earnings in early June. GameStop is on track for its largest increase since Feb. 24, 2021, when it rose 103.9%, according to Dow Jones Market Data.

Another meme name, AMC Entertainment (AMC), rallied more than 12% in sympathy with GameStop, in the stock market today.

Squarespace (SQSP) gapped up over 13% in heavy trading and is extended from a long, undefined base with a 34.38 buy point. Shares also jumped past a bullish three-weeks tight pattern with a 37.89 entry. The move came on news that the website building platform will go private in a $6.9 billion all-cash transaction with U.K.-based private equity firm Permira.

Stock Market Today: Intel Leads Dow

Dow stock Intel (INTC) rose 3.5% on news it is in exclusive talks with Apollo Global Management (APO) on a deal providing Intel with more than $11 billion to build a large chip factory in Ireland. Intel stock is trading far below is 50-day moving average and has lost around 40% year to date. Intel was the biggest gainer on the Dow Jones index in the stock market today.

Shares of Apollo fell 0.9% as they test the 50-day line.

Tencent Music Entertainment (TME) popped more than 7% in heavy volume to a nearly three-year high, after the China-based company reported higher-than-expected first-quarter revenue and adjusted earnings. Revenue declined 8% from the prior year’s quarter while earnings increased 16%.

IBD 50 stock Nvidia (NVDA) reversed lower 0.7%. HSBC analyst Frank Lee still sees a huge earnings potential for the artificial intelligence and semiconductor leader. He raised his price target on Nvidia stock to 1,350 from 1,050 and maintained a buy rating. Separately, a Jefferies analyst resumed coverage on the stock with a 1,200 price target and a buy rating.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

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