Stocks managed to secure slight gains on Friday, concluding the week on a positive note as indicators from the Federal Reserve’s preferred inflation measure bolstered expectations for an interest rate reduction in the coming week. The S&P 500 climbed by 0.3% over the week, while the Nasdaq saw an increase of nearly 1%. Both indices achieved consecutive weekly gains, with the Dow Jones Industrial Average rising approximately 0.5%. The government’s personal consumption expenditures (PCE) price index for September revealed a year-over-year core rate increase that was lower than anticipated, excluding food and energy prices. Although the PCE report’s release was postponed due to the government shutdown, it provided much-needed reassurance to investors ahead of the Federal Reserve’s two-day policy meeting set for Tuesday and Wednesday.
### Federal Reserve Signals Rate Cuts
In the past few weeks, New York Fed President John Williams reignited discussions regarding a potential rate cut from the central bank. During this period, the S&P 500 surged by 5%, closing the week just below its record high of 6,890, achieved on October 28. Noteworthy developments from this week include significant movements in several portfolios.
### Meta Platforms Adjusts Focus
Meta Platforms’ stock rose by 4% this week, following a report from Bloomberg that indicated the company plans to reduce its metaverse investments by up to 30%. This strategy, led by CEO Mark Zuckerberg, could allow Meta to redirect resources toward more immediately profitable ventures like its smart glasses and artificial intelligence initiatives. The company has faced criticism for its heavy spending, especially after increasing its capital expenditure forecasts alongside strong earnings.
### Salesforce Sees Surge in Stock Price
Salesforce shares experienced a remarkable 13% jump this week, attributed to a substantial earnings beat. Despite this positive performance, the stock remains down 22% year-to-date, illustrating the challenges Salesforce faces in reassuring investors that the rise of generative AI won’t undermine its traditional customer relationship management model. In conjunction with their fiscal 2026 third-quarter results, management raised their guidance and highlighted an increase in paid contracts for Agentforce, their AI platform. On a recent episode of “Mad Money,” Salesforce CEO Marc Benioff emphasized that AI has become a “commodity feature” that enhances the overall value of their CRM products.
### CrowdStrike Reports Strong Results
On Tuesday evening, CrowdStrike announced fiscal 2026 third-quarter results that exceeded expectations, along with robust guidance for the future. Jim Cramer referred to the quarter as a “trophy quarter,” noting record free cash flow, annual recurring revenue, and operating income. Despite the stock showing little movement for the week, it is not uncommon for CrowdStrike, as well as other cybersecurity firms like Palo Alto Networks, to experience post-earnings dips before recovering in the following weeks. Following these results, we maintained our buy-equivalent rating on CrowdStrike and increased our price target from $520 to $550.
### Recent Trading Activity
This week, we executed three notable trades. On Monday, we increased our stake in Boeing after the stock stabilized following a significant decline post-earnings in November. We chose not to invest during the downturn, preferring to wait for a more stable environment. On Tuesday, we acquired additional Procter & Gamble shares after a dip related to CFO Andre Schulten’s comments on the current volatility in the U.S. market. We remain optimistic about P&G’s future and are establishing a defensive position amidst uncertainties in the AI sector. On Wednesday, we took some profits from our Goldman Sachs holdings, which reached a record high on Friday, though we remain bullish on this position for the long run.
### Investing Club Insights
As part of the CNBC Investing Club with Jim Cramer, members receive trading alerts prior to any trades made by Jim. He typically waits 45 minutes after sending a trade alert before executing any buy or sell orders in his charitable trust’s portfolio. If a stock has been discussed on CNBC, Jim will wait 72 hours after the alert before proceeding with the trade. Please note that all information regarding the Investing Club is subject to our terms, conditions, and privacy policy, and no specific investment outcomes or profits are guaranteed.
