Trending stocks this week: Wall Street extends gains on softer inflation, trade optimism

[Business on Wall Street in Manhattan]
Pgiam/iStock via Getty Images

Wall Street capped its strongest week since early August, buoyed by robust corporate earnings, renewed optimism over U.S.–China trade relations, and a brief reprieve for investors contending with the ongoing government shutdown that has slowed the flow of economic data.

For the week, the benchmark S&P 500 index (SP500 [https://seekingalpha.com/symbol/SP500]) gained +1.9%, while the blue-chip Dow (DJI [https://seekingalpha.com/symbol/DJI]) added +2.2%. The tech-heavy Nasdaq Composite (COMP:IND [https://seekingalpha.com/symbol/COMP:IND]) advanced +2.3%.

The week’s standout moment came on Friday with the release of the long-awaited September consumer price index (CPI) report, which showed both headline and core inflation rising less than expected month-over-month. Notably, core CPI posted its slowest pace of growth since June, easing investor concerns about persistent inflation.

The softer CPI print bolstered expectations that the Federal Reserve will move ahead with another 25-basis-point rate cut at next week’s policy meeting.

Adding to the week’s market momentum, officials confirmed that President Donald Trump and Chinese President Xi Jinping will meet during Trump’s upcoming Asia visit — a development seen as a potential step toward easing trade tensions between the world’s two largest economies.

HERE’S WHAT CAUGHT INVESTOR ATTENTION THIS WEEK:

NETFLIX (NFLX [https://seekingalpha.com/symbol/NFLX]) slumped after its quarterly profit took a hit from an expense stemming from a dispute with Brazilian tax authorities.

AMAZON’S (AMZN [https://seekingalpha.com/symbol/AMZN]) Web Services suffered a major outage on Monday, disrupting numerous websites, apps, and online games. The company later said the hours-long disruption was caused by a bug in its automation software, which triggered widespread system failures affecting services ranging from Signal to smart home devices.

INTEL (INTC [https://seekingalpha.com/symbol/INTC]) shares rose after the chipmaker reported a return to profitability in its third-quarter results and issued a robust revenue forecast, signaling a potential turnaround. Its Client Computing Group, which produces chips for laptops and desktops, saw revenues climb 5% year-over-year to $8.5 billion, contributing to Intel’s solid sales beat.

NEWMONT (NEM [https://seekingalpha.com/symbol/NEM]) fell even after reporting better than expected Q3 adjusted earnings and revenues, as lower production levels prevented the precious metals miner from taking full advantage of record-high gold prices. Q3 average realized price of gold increased to $3,539/oz from $2,518/oz a year earlier, but attributable gold production fell 15% to 1.42 million oz from 1.67 million oz in the prior-year period.

FORD (F [https://seekingalpha.com/symbol/F]) rose after reporting Q3 results that surpassed profit expectations. Traders also considered the company’s plan to increase pickup truck production by 50,000 units, despite an expected $1.5 billion–$2 billion EBIT hit from the Novelis aluminum plant fire.

TESLA (TSLA [https://seekingalpha.com/symbol/TSLA]) fell after profit plunged despite a record quarter of vehicle sales. The electric vehicle giant reported EPS of $0.50 vs. $0.62 a year ago on revenue that grew 11.6% year-over-year to $28.1 billion. Operating income decreased 40% Y/Y to $1.6B, resulting in a 5.8% operating margin. The company delivered 497,099 vehicles in Q3, up 7% Y/Y, as buyers rushed to capitalize on the end of the $7,500 government tax credit.

QUANTUM COMPUTING STOCKS jumped following a _Wall Street Journal _report that the Trump administration was negotiating equity stakes in several companies. However, a later report from _CNBC_ denied that talks were in progress. Still, IonQ (IONQ [https://seekingalpha.com/symbol/IONQ]), Rigetti Computing (RGTI [https://seekingalpha.com/symbol/RGTI]) and D-Wave Quantum (QBTS [https://seekingalpha.com/symbol/QBTS]) all skyrocketed on Thursday.

INTERNATIONAL BUSINESS MACHINES (IBM [https://seekingalpha.com/symbol/IBM]) fell after it reported disappointing revenue in two key software categories, including its closely watched Red Hat unit.

GENERAL MOTORS (GM [https://seekingalpha.com/symbol/GM]) had its best day in nearly six years on Tuesday after the automaker delivered a top- and bottom-line beat in the third quarter. A combination of upbeat profit guidance and tariff outlook for the coming year gave stock an additional boost. Tariffs are expected to cost the company $4.5B which is $500M less than previously anticipated.

VALERO ENERGY (VLO [https://seekingalpha.com/symbol/VLO]) gained attention after announcing plans to proceed with the closure of its 145,000-barrel-per-day Benicia refinery in California by next spring, following discussions with state officials about potential options to keep the facility operational.

MEME STOCKS staged a resurgence over the past week, with Beyond Meat (BYND [https://seekingalpha.com/symbol/BYND]) soaring more than 1,000% from a recent low at one point. Other popular names, including Krispy Kreme (DNUT [https://seekingalpha.com/symbol/DNUT]), GoPro (GPRO [https://seekingalpha.com/symbol/GPRO]), and iRobot (IRBT [https://seekingalpha.com/symbol/IRBT]), also logged intraday gains of over 10%.

MORE ON THE MARKETS

* The Fed Faces A Lose-Lose Situation After September's CPI Report [https://seekingalpha.com/article/4833408-fed-faces-lose-lose-situation-after-september-cpi-report]
* What Will Markets Do After Near-Likely FOMC Rate Cut [https://seekingalpha.com/article/4833395-what-will-markets-do-after-near-likely-fomc-rate-cut]
* Gold Hits A Speedbump [https://seekingalpha.com/article/4833382-gold-hits-speedbump]
* Wall Street notches record close after soft CPI data, posts best week since early August [https://seekingalpha.com/news/4508315-stock-market-news-today-nasdaq-sp500-dow-jones]
* Reaction Roundup: SA analysts, experts weigh in on soft September CPI data [https://seekingalpha.com/news/4508290-reaction-roundup-sa-analysts-experts-weigh-in-on-soft-september-cpi-data]