Today’s Market Wrap Up and Look Ahead to Tomorrow

Investors breathed a sigh of relief today, sending the S&P 500 to a fresh high even though consumer prices are on the rise. The CPI rose 5% in May, its swiftest pace since the economy was mired in recession in 2008.

After seemingly trading on pins and needles all week, investors handled the results with stride. Maybe that’s because the Fed isn’t expected to make any jolts to its policy until it’s clear whether inflation is here to stay.

The S&P 500 was only up 0.47%, but it was enough to send the index to a new record of 4239.18. The Dow Jones Industrial Average and Nasdaq were both fractionally higher as well.

Yet another economic report revealed that jobless claims hovered at 376,000 last week. Even though results were higher than expected, it is another sign of recovery as it is the sixth consecutive week of declines.

Story Stocks

AMC Entertainment suffered a double-digit percentage decline today. S&P has reportedly issued an upgrade on AMC’s debt, recognizing that the company has a “path to a sustainable capital structure.” Whether that will translate to Friday’s trading remains to be seen, but the stock is extending its losses in after-hours trading.

GameStop fell a steeper 27% today on the heels of Wednesday’s earnings report. The company tapped a pair of executives from e-commerce giant Amazon as it shifts its strategy toward digital. GME shares are up 2.5% in after-hours trading.

Outside of the meme arena, Oxford Industries gained 8% on tried and true fundamentals. The company, which is behind the Tommy Bahama brand, among others, had a Q1 profit while sales rose YoY. The clothing retailer also lifted its 2021 EPS guidance and provided a sales outlook that outperforms 2020.

Look Ahead

Consumers are once again in the spotlight as the Consumer Sentiment Index is set to be released on June 11. Expectations are for a reading of 84.4 compared to 82.9 in the prior month.

Investors will be watching to see if the S&P 500’s rally will continue while meme stocks will look to save face before the weekend. On the IPO front, Tencent-backed Kanzhun, which is behind the Boss Zhipina app, is poised to make its U.S. stock market debut on Friday.