The stock market saw a positive week, with the bulls taking control as cooler inflation data was released. The Dow Jones Industrial Average closed above 40,000 for the first time, marking a 1.24% gain for the week. Both the S & P 500 and Nasdaq Composite also reached new all-time highs, fueled by the favorable inflation data. However, both indexes experienced slightly lower finishes at the end of the week compared to their Wednesday peaks. The S & P 500 saw a 1.54% increase, while the Nasdaq climbed by 2.1%.
Despite the market entering extremely overbought territory, there was a need for cautiousness. The Club made strategic moves by trimming positions in Morgan Stanley and Palo Alto Networks after observing significant price increases. On the other hand, additional shares of Estee Lauder were acquired based on positive market signals from the cosmetic retailer’s China segment.
Palo Alto Networks (PANW)
Palo Alto Networks emerged as the top gainer for the week, with a 6.9% increase. This cybersecurity stock received a boost from an upbeat note issued by Morgan Stanley and news of a strengthened partnership with IBM. Despite its recent outperformance, a decision was made to trim holdings while maintaining a bullish long-term outlook.
Danaher (DHR)
Danaher secured the second-place position with a 4.9% gain, riding a four-session winning streak and hitting multiple 52-week highs. Positive remarks at a health-care conference and encouraging insights on inventory destocking contributed to the stock’s surge, showcasing the benefits of investing in a resilient company.
Broadcom (AVGO)
Broadcom claimed the third spot with a 4.7% increase, including a record close at $1,436.17 per share. While there was no specific catalyst for its strong performance, AI-related announcements from industry leaders likely played a role. Broadcom’s significant gains in 2024 reflect its strategic positioning in the AI trade.
Alphabet (GOOGL)
Alphabet, the parent company of Google, saw its shares rise by 4.4% for the week, setting new record highs. The positive momentum was driven by Google’s I/O developers conference, where new generative AI products were unveiled. Analyst sentiment was upbeat, reaffirming Alphabet’s competitive stance in the AI landscape.
Apple (AAPL)
Apple rounded out the top five performers, with a 3.7% increase. The tech giant’s strong performance following its quarterly earnings report was further fueled by a massive buyback authorization and indications of a growing focus on AI. Partnerships with OpenAI and Google are seen as potential catalysts for Apple’s recent success.
The stock market witnessed a week of positive gains and record highs, driven by favorable inflation data. Strategic maneuvers within the CNBC Investing Club portfolio reflected a balance of profit-taking and long-term bullish outlooks. The top-performing stocks showcased resilience, strategic positioning, and investor confidence in the evolving market landscape.
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