Stocks managed to gain slightly on Friday, concluding the week on a positive note, following new data that supported the possibility of an interest rate reduction by the Federal Reserve next week. The S&P 500 index climbed 0.3% over the week, while the Nasdaq experienced a nearly 1% increase. Both indices achieved consecutive weekly gains. The Dow Jones Industrial Average saw an approximate rise of 0.5%. On Friday morning, the latest report on personal consumption expenditures (PCE) for September revealed a year-over-year core inflation rate that was cooler than anticipated, excluding volatile food and energy prices. Although the PCE data was delayed due to a government shutdown, it came as welcome news in a market eager for information ahead of the Federal Reserve’s two-day meeting set for Tuesday and Wednesday.
### Recent Federal Reserve Insights
It has been a few weeks since John Williams, President of the New York Federal Reserve, revitalized speculation regarding a potential rate cut by the central bank. In that timeframe, the S&P 500 has surged by 5% and concluded this week just below its peak closing record of 6,890 from October 28.
### Portfolio Highlights for the Week
This week, shares of Meta Platforms saw a 4% increase after reports emerged indicating that the parent company of Instagram and Facebook plans to reduce its metaverse investments by as much as 30%. This decision, which could be advantageous for CEO Mark Zuckerberg, may allow the company to concentrate on more immediately monetizable technologies, including its smart glasses and advanced AI initiatives. Meta has been investing heavily, and its stock price has suffered since late October when management raised its capital expenditure projections along with strong earnings.
Salesforce shares surged by 13% during the week, buoyed by a significant earnings beat. Despite being the top performer in the portfolio for the week, the stock remains down 22% year-to-date. This trend reflects the ongoing challenge Salesforce faces in convincing investors that the rise of generative AI does not threaten its traditional seat-based business model for customer relationship management software. Along with the fiscal 2026 third-quarter earnings report released on Wednesday evening, management also raised its forecasts and revealed additional paid contracts for Agentforce, its AI platform. On Thursday’s edition of “Mad Money” with Jim Cramer, Salesforce CEO Marc Benioff asserted that AI is becoming a “commodity feature” that enhances the value of their CRM offerings.
CrowdStrike reported better-than-expected fiscal 2026 third-quarter results and provided optimistic forward guidance on Tuesday evening. Jim Cramer described it as a “trophy quarter,” highlighting the cybersecurity firm’s record achievements in free cash flow, annual recurring revenue, and operating income. Despite the stock showing little movement throughout the week, this lack of reaction to the positive earnings report has become a familiar trend for CrowdStrike and other cybersecurity firms like Palo Alto Networks, which often dip post-earnings before rebounding in subsequent weeks. Following the report, we reaffirmed our buy-equivalent 1 rating on CrowdStrike, increasing our price target from $520 to $550.
### Recent Investment Strategies
Throughout the week, we executed three trade alerts. On Monday, we acquired more shares of Boeing as the stock began to stabilize after a steep decline following its earnings report in November. We refrained from purchasing shares during the downturn, waiting for the situation to settle before investing further. On Tuesday, we added to our position in Procter & Gamble after the stock dipped in response to comments from CFO Andre Schulten regarding a tumultuous U.S. market. We anticipate improved conditions for P&G, and we are strategically building this defensive position in light of potential losses in the AI sector. On Wednesday, we took profits on Goldman Sachs, which reached a record high by Friday. Our long-term outlook for this position remains positive.
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