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
-
Is the EV Tax Credit Going Away? What You Need to KnowTax Credits There's a lot of chatter about the President-elect's plans to eliminate the electric vehicle tax credit. Here's what's happening.
-
Being Nimble Is Key to This Fidelity Bond Fund's OutperformanceThe Fidelity Total Bond ETF has done well over the long term as managers adjust to changing tides.
-
Why This Fidelity Bond ETF Has Outperformed Over the Long Term
The Fidelity Total Bond ETF has done well over the long term as managers adjust to changing tides.
-
10 Inefficiencies I Look for on Rich Retirees' Tax ReturnsYour tax return could hold clues to several missed opportunities and important gaps in your retirement planning.
-
Estate Planning: How Does the Basis Step-Up Rule Work?The step-up in basis, one of the most powerful tools in estate and tax planning, can make a huge difference in capital gains taxes owed.
-
Stock Market Today: Stocks Drop as Post-Election Party EndsIt was a red finish on Wall Street Friday with tech stocks selling off ahead of Nvidia's upcoming earnings event.
-
Will You Pay Taxes on Your Social Security Benefits?You might, depending on your income, but smart financial planning now can help lower or even eliminate your taxes in the future.
-
A Simple Trick for Better Investing: Stop Timing the MarketInvestors who stay the course are rewarded for their patience and discipline, enjoying the benefits of compounding returns over time.
-
Does a Farm Need a Different Homeowners Insurance Policy?Homeowners insurance is all about providing the right tool for the right exposure, and life on the farm comes with different risks than life in the city.
-
Stock Market Today: Stocks Slip After Powell Talks Rate CutsThe main indexes closed lower Thursday after Fed Chair Powell said there's no rush to cut rates.
