After the US Consumer Price Index report was released yesterday, the stock market jumped with heavy trading that may continue through the rest of the week.

All three major stock market indices were up when the market closed on Wednesday, with the Nasdaq Composite leading the way with an impressive 1.40% gain. The S&P 500 trailed behind with a 1.17% increase, and the Dow Jones came in third with a 0.88% gain.

The CPI report indicated that inflation was pulling back slightly as consumer prices were not quite as high as expected. That is great news for the stock market, which saw lots of trading by more confident investors.

For the first time, the S&P 500 closed higher than 5,300 and the Dow Jones jumped by 349 points. These are the kinds of numbers that should give the market lots of momentum moving forward, making for a busy couple of days as the week closes out.

The CPI numbers were only marginally positive, but that was all it took for the market to explode and reach incredible highs, which demonstrates that traders are eager for some kind of positive news and are willing to trade on even a slightly positive note.

Long Term Investments to Watch

Several major companies had muted earning reports that showed good revenue increases but bleak forecasts. Walmart (WMT) is one of those that saw only minor stock movement off of its quarterly earnings report recently as the company is committed to major investments that may pan out in the future.

Netflix (NFLX) had a tough quarterly report reception as well, since the company is investing so much in new products and is not expecting massive subscriber growth in the near future.

Tesla (TSLA) saw sales drop and had to cut jobs as a result. The company has some interesting new products coming out over the next year or so, but their stock has dropped considerably in recent weeks due to a poor profit showing.

All three of these stocks have been great earners in the past and could prove very resilient over the rest of the year. We would advise watching them closely for indications that their major investments are paying off and that the stocks may shoot up unexpectedly before the end of the year.