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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
Small Businesses Are Racing to Use AIThe Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
The Me-First Rule of Retirement SpendingFollow the 'Me-First" rule and you won't have to worry about running out of money when the stock market goes south.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest RatesAs speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial ProfessionalWinning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and CommentaryThe September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your WalletInterest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your InvestmentsDon't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can HelpArtificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.
