Stocks experienced modest gains on Friday, wrapping up the week on a positive note as the Federal Reserve’s preferred inflation metric bolstered expectations for an interest rate reduction next week. Over the week, the S&P 500 climbed by 0.3%, while the Nasdaq saw an increase of nearly 1%. Both indexes achieved consecutive weekly gains, with the Dow Jones Industrial Average rising approximately 0.5%. On Friday morning, the September personal consumption expenditures (PCE) price index, which measures inflation excluding food and energy costs, revealed a year-over-year increase that was less than anticipated. Despite the delay in the report due to the government shutdown, its arrival was timely in a market eager for data ahead of the Fed’s upcoming two-day policy meeting on Tuesday and Wednesday.
### Federal Reserve Insights Boost Market Sentiment
It has been a few weeks since New York Fed President John Williams reignited discussions around the possibility of a rate cut by the central bank. Since then, the S&P 500 has rebounded by 5% and concluded this week just below its all-time closing high of 6,890, set on October 28. This week saw several noteworthy developments in various portfolios.
### Meta Platforms Adjusts Spending Strategy
Shares of Meta Platforms rose by 4% this week following reports that the parent company of Instagram and Facebook plans to reduce its metaverse investments by up to 30%. This strategic shift, led by CEO Mark Zuckerberg, appears to be a prudent decision, particularly if it allows the company to redirect focus towards more immediately monetizable technologies, such as Meta’s smart glasses and artificial intelligence initiatives. Meta has faced significant financial pressure, particularly since late October when management raised capital expenditure forecasts amid strong earnings reports.
### Salesforce Surges on Strong Earnings
Salesforce shares surged by 13% this week after the company reported impressive earnings that exceeded expectations. Despite this notable performance, the stock remains down 22% year-to-date, highlighting the ongoing challenge Salesforce faces in assuring investors that the rise of generative AI will not undermine the traditional seat-based business model of its customer relationship management (CRM) software. In conjunction with its third-quarter fiscal 2026 results released on Wednesday, Salesforce management also raised guidance and unveiled additional contracts for Agentforce, its AI platform. During an appearance on Thursday’s “Mad Money” with Jim Cramer, CEO Marc Benioff emphasized that AI serves as a “commodity feature” enhancing the value of their CRM offerings.
### CrowdStrike Reports Strong Results
On Tuesday evening, CrowdStrike announced fiscal 2026 third-quarter results that surpassed expectations, along with optimistic forward guidance. Jim Cramer referred to this as a “trophy quarter” for the cybersecurity firm, which reported record figures in free cash flow, annual recurring revenue, and operating income. Despite the stock’s relatively flat performance throughout the week, this bullish report did not elicit a significant price movement, a trend increasingly common for CrowdStrike and other cybersecurity stocks, including Palo Alto Networks, which often see declines post-earnings before rebounding in subsequent weeks. Following the report, we reaffirmed our buy-equivalent rating on CrowdStrike and adjusted our price target from $520 to $550.
### Recent Trade Alerts and Portfolio Adjustments
This week, we issued three trade alerts. On Monday, we increased our position in Boeing as the stock showed signs of stabilizing after a significant decline following its earnings report in November. We opted to wait for a stabilization period, avoiding purchases during the sharp downturn. On Tuesday, we added to our holdings in Procter & Gamble after shares dipped in response to CFO Andre Schulten’s comments regarding a turbulent U.S. market environment. We foresee improved conditions for Procter & Gamble and are establishing a defensive position in anticipation of a slowdown in the AI investment trend. On Wednesday, we took profits on Goldman Sachs, which reached a record high on Friday. Our long-term outlook for this position remains strong.
### Trade Alert and Investment Club Information
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