Stock Market Today: Stocks mixed as inflation data looms, GameStop higher

Published 3:34 am Wednesday, May 15, 2024

By Martin Baccardax

: Federal Reserve Board Chairman Jerome Powell.

Check back for updates throughout the trading day

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U.S. equity futures were mixed in early Wednesday trading, while Treasury yields and the dollar slipped lower, as investors braced for a crucial April inflation report that could challenge the market’s recent spring rally.

Stocks closed firmly higher last night, with the Nasdaq notching a fresh all-time high, despite a hotter-than-expected factory inflation report that rattled investors looking to today’s CPI reading.

Federal Reserve Chairman Jerome Powell also struck a hawkish chord during an banking event in Amsterdam Tuesday, where he said he was “less confident” than earlier in the year on the prospects for slowing inflation.

That reaction, as well as the market’s willingness to power through a hot PPI reading, suggests a firm focus on today’s consumer price inflation report, which is expected to show a modest uptick in monthly price pressures and a muted decline in the year-on-year reading.

Fed Chairman Jerome Powell conceded yesterday that he is “less confident” than he was earlier this year that inflation is moderating to the central bank’s 2% target.

Chip Somodevilla/Getty Images

“We believe the market will take comfort from a report that meets consensus estimates or is lower than consensus, as this will suggest a continued step lower on the month-over-month core CPI trend,” said John Madziyire, senior portfolio manager and head of U.S. Treasuries and TIPS at Vanguard.

Benchmark 10-year note yields eased to 4.420% in overnight dealing ahead of today’s inflation report, as well as the Commerce Department’s April retail sales report, while 2-year notes were pegged at 4.802%.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.16% lower at 104.848.

Heading into the start of the trading day on Wall Street, futures tied to the S&P 500, which is now less than 20 points from a fresh all-time high, suggest a 2 point opening bell gain for the benchmark.

Futures linked to the Dow Jones Industrial Average, meanwhile, suggest a 27 point advance while those tied to the Nasdaq, which is up 10% for the year, are set for a 2 point dip.

Meme stock names such as GameStop (GME) and AMC Entertainment (AMC) were back on the rise, but the gains were muted when compared to the previous two day’s action, with GameStop rising 10% and AMC marked 11% higher.

In overseas markets, the region-wide Stoxx 600 was marked 0.3% higher in Frankfurt, while the FTSE 100 0.23% higher in London.

More Wall Street Analysts:

Overnight in Asia, the region-wide MSCI ex-Japan index rose 0.51% despite a slide for stocks in Shanghai and Shenzhen following President Biden’s move to impose tariffs on $18 billion worth of China-made goods.

Japan’s Nikkei 225, meanwhile, edged 0.07% higher in Tokyo to close at 38,385.73 points.