The Dow Jones Industrial Average and other major indexes rose to end Tuesday's session on the heels of hot inflation data and reassuring comments from Federal Reserve Chairman Jerome Powell. Meanwhile, GameStop and AMC Entertainment continued to rally on the stock market today amid a revived meme-stock frenzy.
The Dow erased early losses and traded 0.3% higher while the S&P 500 climbed 0.5%. The tech-heavy Nasdaq index rose 0.8%.
The small-cap Russell 2000 fared well with a gain of 1.2%, while the Innovator IBD 50 ETF rose 1.1%. The yield on the benchmark 10-year Treasury note fell 3 basis points to 4.45%.
Volume on the New York Stock Exchange and on the Nasdaq came in higher compared with the same time on Monday. Advancers outnumbered decliners on both exchanges.
Inflation Hot, But Powell Doesn't See It That Way
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%.
On Wednesday, the consumer price index is expected to fall slightly to 0.3% in April from March's 0.4% increase.
Despite the inflation numbers, Fed Chair Powell told the Foreign Bankers' Association in Amsterdam that the U.S. economy "has been performing very well lately." He added that consumer spending and business investment have been strong. Powell also said inflation showed "progress," mentioning that Tuesday's PPI data was "not hot" but "mixed."
The Fed chief deemed a rate hike unlikely, and called a hold on rates a strong possibility. Powell called Fed policy restrictive enough, but added that it takes more time because of the "legacy of the low-inflation era" from which business and home financing continue to benefit.
Market Near Highs Ahead Of CPI Inflation; 5 Stocks Flash Buy Signals
Stock Market Today: Memes Rocket, Dow Jones Players Mixed
Meme stocks continued to rally after the return of trader Keith Gill to social media on Monday. GameStop skyrocketed nearly 70% after Monday's 74% rally and finished the day with a 62.7% gain.
AMC rose in sympathy, notching a 32.8% jump. The movie theater chain climbed as much as 129% in morning trading before surrendering some gains.
On the Dow Jones index, Home Depot inched downward after first-quarter earnings came in higher than estimates while sales were just a bit lower. HD stock is testing its 200-day moving average.
Intel and Boeing were the best performers on the Dow today, each up more than 1%.
Tech leaders in the Dow index came in mixed. Apple and Microsoft rose. Salesforce slipped 0.3% while Cisco Systems gained ahead of its third-quarter results due Wednesday. JPMorgan Chase broke out of a flat base with a buy point of 200.94.
Growth Stock Breaks Out, Oil Firm Falls
Outside the Dow Jones index, IBD MarketSurge Growth 250 name Pure Storage broke out past a buy point of 55.09 from a double-bottom base. Volume was tracking about 50% higher on the stock market today. Pure Storage is also a holding on IBD SwingTrader. Also on SwingTrader, Dutch Bros was flat and fell just short of a buy point at 36.17.
In the oil transportation group, MPLX triggered a sell signal by falling below the 50-day line in heavy volume. It was the first breach of the line since the stock broke out in January.
IBD Stock of the Day CrowdStrike rose in a base with a buy point of 365.
On Holding soared 18.3%, and moved above the 50-day moving average after first-quarter earnings and sales beat views. Crocs rose in sympathy and tried to break out at a buy point of 146.79. Skechers also rose.
An earnings miss shook Chinese e-commerce giant Alibaba. Shares had rebounded from the 200-day moving average ahead of fiscal fourth-quarter results but fell 6% Tuesday and are back below that level, according to IBD MarketSurge.
Meanwhile, Tencent Holdings jumped 4.4% after profit surged in its first quarter. In discount retail, Miniso Group fell 4.7% after it announced results for its March-ended quarter. It was among the worst performers in the MarketSurge Growth 250 on the stock market today.
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