Stocks took a breather on Thursday, with the S&P 500 down 0.18% and the Nasdaq Composite lower by 0.26%. The Dow Jones Industrial Average crossed 40,000 for the first time but ended the day down slightly. Despite this, all three indices hit new highs earlier in the week, bringing a sense of optimism as the first quarter earnings season comes to a close. Market volume was lower on Thursday after more active days on Tuesday and Wednesday.
This week saw a lot of economic data being released as earnings season continued. Both the Producer Price Index (PPI) and Consumer Price Index (CPI) offered conflicting views on the inflation picture. However, investors seemed to focus on the lower-than-expected reading from the CPI. Next week, economic data points are lighter, with the highlight being Durable Goods, which is due out on Friday.
On the earnings front, Walmart reported growth in the number of shoppers buying from their stores, including an increase in those with a household income above $100 thousand. This suggests Walmart may be encroaching on “next tier” retailers such as Target. In contrast, Home Depot reported weaker than expected same-store sales, citing interest rates as a hindrance. Applied Materials reported earnings that beat expectations but their outlook was not as enthusiastic as some had hoped.
The biggest individual stock news this week was the return of meme stocks, with GameStop and AMC grabbing most of the headlines. Their volatility was notable, with GameStop already indicated lower in premarket trading. Meanwhile, other stocks like Netflix, Nvidia, and CrowdStrike saw bullish activity ahead of earnings reports. On the bearish side, Boeing and Roku saw more bearish trades, with Boeing breaking above its 50-day moving average.
Reddit shares were higher after announcing a partnership with OpenAI that is expected to increase advertising revenue. Meanwhile, copper prices have surged this year, up nearly 9% this month alone. With copper supplies becoming constrained while demand increases, upward pricing pressure is expected. It is important to stick with investing plans and long-term objectives amidst market fluctuations and news developments. This content is for educational purposes only and is not trading or investment advice.
