Today’s Market Wrap Up and Look Ahead to Tomorrow

The S&P 500 remains so close yet so far away from another record high as stocks fail to find enough momentum to push the index over the top. The index hovers at 4,219 compared to an all-time high of 4,232. All three major indices — the Dow Jones Industrial Average, S&P 500 and Nasdaq — finished the day fractionally in the red.

Declines in names like General Electric, Bank of America and Target offset any gains in the likes of Johnson & Johnson and Apple. Investors have been treading lightly ahead of tomorrow’s CPI data so they can get a read on inflation in the economy.

Wall Street firm Deutsche Bank is predicting that there is danger ahead on the inflationary front due to the massive economic stimulus that has made its way to the economy. The firm doesn’t expect inflation to rear its head until 2023, however.

Meme Stocks Most Active

Not surprisingly, meme stocks topped the list of the most actively traded names. Companies like Clover Health, AMC Entertainment and BlackBerry rounded out the five most actively traded stocks during the regular session. It wasn’t until after the markets closed, however, that things got really interesting.

GameStop reported its much-anticipated fiscal Q1 earnings and the stock tanked 9% in after-hours trading. Sales were up 25% thanks to the company’s shift in strategy toward e-commerce. They are going for it and have named Amazon alum Matt Furlong as the new chief executive. Investors didn’t like the fact that GameStop failed to give an outlook. The company is also looking to sell up to 5 million shares of its common stock.

On the regulatory front, the U.S. Securities and Exchange Commission is looking into changing the rules in the market. Chairman Gary Gensler said he doesn’t want to see orders directed to high-frequency traders, suggesting that retail investors would get a better shot at the best price if there was more efficiency in the stock market.

Look Ahead

For tomorrow, all eyes will be on the U.S. Bureau of Labor Statistics’ CPI report. Estimates are for the index to come in at a whopping 0.5% for May, nudging the 12-month rate for prices to just below that level. If the forecasts are right, the cost of living is likely to exceed any pay raises that the workforce will see.

On the earnings front, the calendar is light with Azure Power, Roots Corp and Chewy all on deck.