This week, the bulls in the stock market saw their wishes come true with cooler inflation data and record highs. The Dow Jones Industrial Average closed above 40,000 for the first time, marking a 1.24% gain for the week. The S&P 500 and Nasdaq Composite also closed at all-time highs fueled, in part, by lower-than-expected inflation data released earlier in the week. However, the market moved into extremely overbought territory, prompting the CNBC Investing Club to maintain discipline by trimming positions in Morgan Stanley and Palo Alto Networks while buying additional shares of Estee Lauder.
Palo Alto Networks (PANW) was the leading performer for the week, with a 6.9% gain driven by positive news from Morgan Stanley and a strengthening partnership with IBM. Danaher (DHR) claimed the second spot, advancing 4.9% on the heels of a four-session win streak and positive remarks from CEO Rainer Blair at a Bank of America healthcare conference. Broadcom (AVGO) took the third spot with a 4.7% increase encouraged by AI-related announcements from OpenAI and Google’s developers conference. Alphabet (GOOGL) followed closely behind, with a 4.4% gain after Google’s I/O conference and the unveiling of new generative AI products. Apple (AAPL) rounded out the top five, climbing 3.7% following strong quarterly earnings and a massive share repurchase authorization.
Palo Alto Networks has been a standout performer since early April, prompting the CNBC Investing Club to trim positions. Danaher’s recent surge, fueled by positive presentations and encouraging remarks, demonstrates the benefits of staying invested in a well-run company. Broadcom’s strong performance this week was likely influenced by AI-related announcements, showcasing the company’s position in the AI trade. Alphabet’s stock closed at record highs fueled by Google’s I/O conference and the unveiling of new generative AI products. Apple’s performance can be attributed to strong quarterly earnings, a massive share repurchase authorization, and signs that the company is taking AI more seriously.
Overall, the stock market saw a week of record highs and positive gains fueled by cooler inflation data. The CNBC Investing Club maintained discipline amidst overbought conditions by trimming positions in some stocks and adding to others. The top five performers for the week included Palo Alto Networks, Danaher, Broadcom, Alphabet, and Apple, each seeing gains driven by various catalysts such as positive company presentations, partnerships, AI-related announcements, and strong quarterly earnings. The future outlook remains positive for these companies, with continued growth expected in the coming weeks.
