Volume started to thin out Wednesday ahead of the long holiday weekend. As a reminder, the stock and bond markets will be closed Friday for the Good Friday holiday.
Those market participants that stuck around today were in a relatively upbeat mood, with the main indexes finishing higher across the board.
At the close, the Nasdaq Composite was up 0.5% at 16,399. The S&P 500 was 0.9% higher at 5,248, a new record high, while the Dow Jones Industrial Average outpaced its peers, adding 1.2% to 39,760 as pharmaceutical giant Merck (MRK) popped.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Merck hits record highs on regulatory win
Indeed, Merck was the best Dow Jones stock today, jumping 5% to a record-high close of $131.75 after the Food and Drug Administration (FDA) approved Winrevair, the company's treatment for pulmonary arterial hypertension.
The approval came without any additional label requirements beyond an anticipated one for monitoring, prompting a sigh of relief among investors, says BofA Securities analyst Geoff Meacham (Buy). The analyst sees upside to Winrevair's approval and estimates sales to hit $4.7 billion by 2030.
GameStop sinks on Q4 miss
In other single-stock news, GameStop (GME) took a notable dive, shedding 15% after earnings. The video game retailer reported fourth-quarter earnings of 22 cents per share on revenue of $1.79 billion, missing analysts' estimates for earnings of 30 cents per share on $2.05 billion in sales.
"Despite a quarter that featured an extra week and modestly positive industry trends, GameStop delivered a large sales decline [-24% year-over-year] as it continues to deal with a mix shift in software sales, declining hardware sales, fewer large console releases and the growth of subscription services," says Wedbush Securities analyst Michael Pachter (Underperform, the equivalent of Sell).
GME's fate isn't likely to be sealed in the next 12 months, Pachter adds, "but we expect the company's demise at some point later this decade."
PCE, Powell on deck
Looking ahead, Thursday's economic calendar features a few noteworthy reports, including the final reading on first-quarter gross domestic product (GDP) and the University of Michigan's March Consumer Sentiment Index.
However, the key data point is February's Personal Consumption and Expenditures (PCE) Price Index, the Fed's favorite inflation indicator that tracks consumer spending, which will be released Friday morning. This will be followed by a late-morning speech from Federal Reserve Chair Jerome Powell.
Sticky inflation data has pushed back expectations for the first quarter-point rate cut to June vs May. However, the Fed's "dot plot" released last week showed most central bank officials still anticipate three quarter-point cuts to the federal funds rate this year despite their slightly elevated inflation expectations.
Considering Friday is a stock market holiday, the outcome of the PCE data and Powell's speech could lead to a volatile start to Monday's session.
Related content
- Costco Will Limit Access to $1.50 Hotdogs
- Are Banks Open on Good Friday?
- Kiplinger's Earnings Calendar for This Week
-
Will Your State End Tax on Tips This Year?State Tax While President Trump spearheads federal talk on tips, several key states are considering ending taxes on tip income.
-
From wire fraud to fake listings, real estate scams are becoming more sophisticated. Discover how to protect yourself from common scams in 2025.Learn how to recognize and prevent the latest real estate scams.
-
Alternative Investments Under Trump: What You Need to KnowAs access to alternative markets opens up, retail investors looking to enhance their long-term financial outcomes have more opportunities to carefully consider.
-
Beware of TV/Billboard Personal Injury Law Firms: Here's WhyIf you or someone you know is tempted to hire a so-called settlement mill to handle a personal injury case, here are some reasons to reconsider.
-
How Small Businesses Can Clear the Economic Hurdles AheadShifting rules on taxes, trade and regulation are creating uncertainty for SMBs. Owners can overcome that by focusing on efficiency, flexibility and investment.
-
Stock Market Today: Dow Adds 353 Points Despite Soft Retail SalesInvestors and traders shake off another set of shaky economic numbers and send 10 of 11 sectors higher on Monday.
-
CoreWeave IPO: Should You Buy CRWV Stock?The CoreWeave IPO will mark the biggest public offering of the year, with the AI cloud company expected to start trading on the Nasdaq in late March.
-
Nvidia Stock's Been Growing for Years. Just Look At Its 100,000% ReturnNvidia shareholders have had to stomach intense volatility over the years, but they have come out on top thanks to the AI chipmaker's bellwether status.
-
10 Tax Topics Every Retiree Should Know AboutA little knowledge can go a long way toward saving on your tax bill. Print this out and take it to your tax planner so you can have a productive chat.
-
It's No Surprise That Berkshire Hathaway's in the 100,000% Return ClubWarren Buffett's fascination with the insurance industry has helped Berkshire Hathaway's stock return snowball.
