Stocks delighted investors as the major indexes racked up robust gains after April inflation data met expectations. The major indexes closed at record highs Wednesday. And meme stocks GameStop and AMC Entertainment gave back a large portion of gains in the stock market today.
The Dow Jones Industrial Average added 0.9%, or 349 points, in Wednesday's action. The S&P 500 jumped 1.2%, and closed above 5,300 for the first time. The Nasdaq outperformed with a 1.4% jump. All three climbed to record highs.
The small-cap Russell 2000 tacked on 1% and is nearing a new high.
Volume rose on the Nasdaq and fell on the New York Stock Exchange vs. the same time in Tuesday's session, in preliminary numbers.
Among exchange traded funds, Invesco QQQ Trust popped 1.6%. The Innovator IBD 50 ETF added 2.3% on the stock market today.
Stock Market Today: Inflation, Retail Sales Tame
The Labor Department said April's consumer price index rose 0.3% month over month as expected, while the annual increase of 3.4% also met Econoday's consensus forecast. The monthly and annual readings improved from March's 0.4% monthly rise and its 3.5% annual increase.
The monthly core CPI reading, which strips out food and energy, increased 0.3% while the year-over-year number rose 3.6%, both meeting expectations.
Meanwhile, April retail sales were flat vs. the 0.4% rise economists had forecast. Excluding vehicles and gas, sales fell 0.1% vs. an expected 0.1% increase.
The benchmark 10-year Treasury yield shed 9 basis points to 4.36%.
West Texas intermediate crude oil climbed near $78.75 a barrel.
IBD 50 Stock Samsara Breaks Out, Nio Stock Plunges
IBD 50 stock Samsara spiked more than 5% and broke out of a cup base with a 40.54 buy point. Shares are in the 5% buy zone up to 42.57. Samsara's quarterly sales have grown in the 40% to 49% range for the last six periods. FactSet estimates 69% earnings growth in fiscal 2025, which ends in January.
Chinese electric vehicle maker Nio reversed lower around 8%, as some Chinese stocks felt pressure.
Nio announced Wednesday its new lower-priced auto, Onvo, to rival Tesla's similar Model Y as the battle for more affordable electric cars heats up. But the Biden administration announced new tariffs on Chinese electric vehicles.
Magnificent Seven name and Nio rival Tesla also gave back morning gains and sank 1.5% at the close. The electric vehicle stock is seeking support at its 21-day exponential moving average.
GameStop And AMC Tank After Short-Lived Rally
Meme stock GameStop plummeted around 19% in heavy volume on the stock market today after two roaring days of gains. Shares reached a high of 64.83 on Tuesday's explosive move but were back around 40 in recent trades.
The stock returned to investors' radar after Keith Gill, who sparked the meme stock rally during the pandemic, made his return to social media for the first time in three years.
Fellow meme stock AMC Entertainment tumbled 20% in heavy trading. This comes after two days of massive gains in volatile action.
On Wednesday, AMC announced it will issue nearly 23.3 million shares of common stock in exchange for $163.9 million of bonds that mature in 2026. Temporary trading halts were put on both AMC and GameStop Wednesday morning due to volatility.
Homebuilder Rallies On Price-Target Hike
Toll Brothers gapped up from a cup-with-handle base with a 128.75 buy point after Wells Fargo raised its price target to 150 from 142 and held an overweight rating. Its relative strength line hit a 52-week high as shown by the blue dot on MarketSurge charts.
Shares reached a record high. Toll Brothers plans to announce fiscal second-quarter results after the market close on May 21.
Several other homebuilders also broke out.
KB Home gained more than 5% and broke out of a cup-with-handle base on the stock market today, topping the 70.58 buy point. The homebuilder rose in sympathy with Toll Brothers. The stock and its relative strength line reached a 52-week high.
Another homebuilder stock, PulteGroup, jumped 5% and topped the 120.74 buy point of a cup-with-handle base. Shares are in the buy zone up to 126.78.
Market Rally Hits Highs, Nvidia Leads 12 New Buys
Stock Market Today: India Travel Stock Pops
Monday.com soared more than 20% in heavy action, after the company beat first quarter profit and sales estimates. The Israel-based software applications company also gave second-quarter and full-year revenue forecasts above analyst projections. The stock is on track for its biggest increase since Aug. 17, 2021, when it rose 24.5%. The stock reclaimed its 200-day and 50-day moving averages.
IBD 50 stock MakeMyTrip climbed more than 10% following the India-based travel company's better-than-expected earnings and sales for its fiscal fourth quarter. MakeMyTrip stock is on Investor's Business Daily's Leaderboard watchlist.
Finally, IBD SwingTrader stock Dell Technologies surged more than 11% to a new high on the stock market today after Morgan Stanley raised its price target to 152 from 128 and maintained its overweight rating.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
