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 optimism as first quarter earnings season comes to a close. Volume was lower on Thursday after more active trading days on Tuesday and Wednesday.
This week brought a flurry of economic data as earnings season continued. The Producer Price Index (PPI) and Consumer Price Index (CPI) offered differing views on inflation, with investors ultimately choosing to focus on the lower-than-expected reading from CPI. Next week’s economic calendar is lighter, with Durable Goods being the highlight due out on Friday.
On the earnings front, Walmart’s stock shot to an all-time high after reporting increased sales, particularly from households with incomes above $100,000. This suggests Walmart may be gaining ground against competitors like Target. Home Depot reported weaker than expected same store sales, citing high interest rates as a hindrance. Applied Materials beat earnings expectations but offered a less enthusiastic outlook than anticipated, causing the stock to drop in premarket trading.
The most significant individual stock news of the week was the resurgence of meme stocks, with GameStop and AMC grabbing headlines once again. GameStop closed at $27 on Thursday with an expected drop in premarket trading, while AMC saw slight decrease as well. Looking ahead, both stocks are expected to continue experiencing volatility next week. Meanwhile, other stocks like Netflix, Nvidia, and CrowdStrike saw bullish trading activity from investors.
Reddit’s shares rose over 10% following news of a partnership with OpenAI aimed at boosting advertising revenue. Copper prices also surged, with a nearly 9% increase this month alone. The increase in copper prices is attributed to growing demand for the metal in products like electric batteries, as supplies become limited. Overall, it is recommended to stick with investing plans and long-term objectives, despite market fluctuations and trends.
