Stocks ended mixed Monday, with the Dow Jones Industrial Average breaking an eight-day winning streak, amid growing concerns about inflation.
The Dow Jones Industrial Average slipped 81 points, or 0.21%, to end at 39,431.51, while the S&P 500 lost 0.02% to 5,221.42 and the tech-heavy Nasdaq finished up 0.29% to 16,388.24.
A survey by the New York Federal Reserve showed consumers last month raised their expectations for price increases in both the near and long term.
On a one-year basis, inflation expectations rose to 3.3%. Their five-year outlook ticked up to 2.8%.
Home price growth expectations reached the highest level since July 2022, increasing to 3.3% after remaining unchanged at 3.0% for seven consecutive months.
The Commerce Department will publish its April Consumer Price Index estimate on May 15, with economists looking for an easing in the monthly increase to 0.3% and a year-on-year rate of 3.6%
GameStop shares skyrocketed, ending the day up 74.40% to $30.45, following the first social media posting from Keith Gill, otherwise known as Roaring Kitty, in nearly three years.
Updated at 11:46 AM EDT
Deja vu all over again
Stocks are slipping into the read as markets head into the mid-day session, with most of the headline focus on meme stocks, as investors look to inflation and retail data later in the week.
The S&P 500 was last marked 1 point lower on the session, with the Dow falling 10 points. The Nasdaq, meanwhile, was holding on to gains and was last marked 35 points, or 0.22%, higher on the session.
This week’s data dump pic.twitter.com/Q1iehCFaiy
— Liz Ann Sonders (@LizAnnSonders) May 13, 2024
Updated at 10:38 AM EDT
Deja vu all over again
GameStop is leading a surge in so-called meme stocks, and other names typically associated with big retail investor bases, following the first social media posting from Keith Gill, otherwise known as Roaring Kitty, in nearly three years.
Alongside GameStop, which is up 79% after several volatility halts on the NYSE, AMC Entertainment (AMC) shares are up 18.2% while Reddit (RDDT) shares gained 11.15%.
Even Tesla (TSLA) is getting in on the act, rising 3.1% to $173.63 amid the meme stock ramp.
Related: GameStop rockets, pounding short sellers, as 'Roaring Kitty' returns; shares halted
Updated at 9:38 AM EDT
Solid open
The S&P 500 was marked 9 points, or 0.17% higher in the opening minutes of trading, with the Nasdaq rising 42 points, or 0.25%.
The Dow, meanwhile, is on pace to extend its win streak to a ninth consecutive session with an early gain of 95 points, or 0.24%.
S&P 500 Opening Bell Heatmap (May 13, 2024)$SPY +0.28% 🟩$QQQ +0.41% 🟩$DJI +0.25% 🟩$IWM +0.83% 🟩 pic.twitter.com/7ODhd98iD9
— Wall St Engine (@wallstengine) May 13, 2024
Updated at 8:40 AM EDT
Blackwell boost
Nvidia (NVDA) shares were back on the march Monday, rising nearly 1% in pre-market trading to $907.34 each, after a pair of analysts boosted their price targets on the group head of its first quarter earnings next week.
Related: Analysts overhaul Nvidia stock price targets ahead of earnings
Stock Market Today
Stocks ended firmly higher last week, pulling the S&P 500 past its 50-day moving average, a key Wall Street performance metric, and extending the Dow's run of consecutive session gains to eight, the longest winning streak in nearly six months.
Better-than-expected earnings as well as weakening labor-market data were last week's principal drivers, with collective first-quarter S&P 500 profits set to rise by 7.4% now that just over 80% of the benchmark has reported.
Related: Stocks defy 'Sell in May' with spring rally, but summer gains may be tough
Last week's jobless-claims data also showed the biggest week-on-week increase since last August, a move that could suggest a slower pace of hiring into the summer months. That in turn could damp wage-related inflation pressures.
The Commerce Department will publish its April Consumer Price Index estimate on May 15, with economists looking for an easing in the monthly increase to 0.3% and a year-on-year rate of 3.6%.
Getty
Investors will also get a series of readings on the state of the U.S. consumer, with April retail-sales data on May 15, as well as first quarter earnings from Home Depot (HD) and Walmart (WMT) on May 14 and May 16 respectively.
At present, investors are expecting the Federal Reserve to deliver the first of two rate cuts this year in September, according to CME Group's FedWatch.
"This week’s all-important inflation data arrives just as a three-week rally has the S&P 500 knocking on the door of its March record highs," said Chris Larkin managing director for trading and investing at E*Trade from Morgan Stanley.
"An extension of the rally could depend on whether investors still feel positive about rate cuts after this week’s numbers," he added. "Signs of cooling in the labor market and encouraging comments from the Fed may have made it easier for them to accept that a first cut may not happen until September, but more sticky inflation data still has the potential to trigger market volatility."
Heading into the start of the trading day on Wall Street, futures contracts tied to the S&P 500, which is up 3.7% for the month, are priced for a 7-point opening bell gain.
The Dow Jones Industrial Average, meanwhile, is set for a 40-point gain while the tech-focused Nasdaq is called 42 points higher.
Benchmark 10-year Treasury note yields were last marked steady at 4.481% while 2-year notes were pegged at 4.851% heading into the start of the New York trading session.
GameStop (GME) shares were a notable early mover, rising nearly 20% in premarket trading, after the meme-stock trader Keith Gill, known as "roaring kitty," posted on his X social media account for the first time in three years.
— Roaring Kitty (@TheRoaringKitty) May 13, 2024
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.04% lower at 105.256.
In overseas markets, Europe's Stoxx 600 was little changed in early Frankfurt trading, slipping just 0.05%, with investors focused on inflation and GDP readings later in the week.
More Wall Street Analysts:
- Analyst unveils new Nike price target ahead of big summer for sports
- Analysts weigh in on Google-parent Alphabet’s stock after cloud event
- Analysts revamp Disney stock price target after proxy fight
Overnight in Asia, a surprise move by the Bank of Japan to lower the level of government bond purchases in its regular operations added value to the yen. The currency rose to 155.85 against the U.S. dollar but sent the Nikkei 225 0.13% lower into the close of trading.
The regionwide MSCI ex-Japan index, meanwhile, was marked 0.56% higher, thanks in part to solid gains for stocks in Hong Kong and Taiwan.
Related: Veteran fund manager picks favorite stocks for 2024
