Stocks rose for the second week in a row to hit a record high on Friday as Washington’s trade and shutdown drama overshadowed cooling inflation data and solid earnings. The S&P 500 and Nasdaq rose 2% and 2.3%, respectively, for the week. In fact, the S&P 500 index on Friday hit a high above 6,800 for the first time in history before closing just below that level. Both stock benchmarks hit record highs at Friday’s close. The consumer price index for September, which was released 10 days late due to the federal government shutdown, was encouraging as stock prices rose on the last day of the trading week. The headline CPI rose 0.3% month-on-month and 3% year-on-year. The increase was less than expected. Core interest rates, which exclude food and energy prices, rose 0.2% from the previous month and 3% from the same period last year. Again, both profits were lower than expected. The CPI report was well-received as it opened the door wide for the Federal Reserve to cut interest rates again when central bankers meet next week. .SPX .IXIC 5D Mountain S&P 500 and Nasdaq Weekly Performance The CPI was also the only official economic indicator released during the government shutdown, which is in its fourth week. The Senate adjourned Thursday and will not reconvene until Monday afternoon. There was a lot of talk about President Donald Trump’s decision Friday to halt trade talks with Canada as the government shutdown drags on, with an ad featuring former U.S. President Ronald Reagan speaking negatively about tariffs. On the brighter side of the trade ledger, the White House confirmed that President Trump’s trip to Asia next week will include a meeting with Chinese President Xi Jinping. Neither the trade headlines nor the shutdown impasse moved the market. In addition to the inflation data, the stock market was supported by a spate of impressive earnings reports, with about 30% of the S&P 500 index reporting quarterly results so far. In fact, according to LSEG, 87% of these company names exceeded earnings estimates, which is much higher than the typical 67% achievement rate. Danaher, Capital One, GE Vernova, Honeywell and Dover club names all followed that trend when releasing their respective numbers this week. On Tuesday morning, Danaher released upbeat early guidance for its upcoming fiscal year, with strong sales and bottom line gains. Meanwhile, stock prices soared. Investors cheered the much-needed positive news for Danaher after a long period of weakness. DHR YTD Mountain Danaher YTD “Danaher has tested our patience in recent quarters as the post-pandemic recovery has proven difficult for companies serving the biotech and pharmaceutical industries. Our significant presence in China has provided us with an additional hurdle to overcome,” Zeb Fima, portfolio analyst at the club, said in an earnings analysis. “But the kind of market reaction we’re seeing on Tuesday is why we decided to remain invested in Danaher, which was once a reliable outperformer.” The club maintained its $240 per share price target but downgraded the stock’s rating to a ‘2.’ This means that you might consider buying more shares at a lower price. That doesn’t mean Danaher’s theory will change. In fact, the stock is up more than 22% since it last added to a position in late September. Danaher is up nearly 6.7% this week, putting it in second place on the weekly leaderboard. Capital One posted a big quarterly profit on Tuesday night. Our biggest win from America’s largest credit card issuer was better-than-expected credit performance. During Friday’s morning meeting, Jim Cramer said Capital One is “still a favorite stock in my portfolio, even though it’s gone up a lot since I bought it.” COF YTD Mountain Capital One Year to Date “Credit has been a hot topic in the market lately due to the high-profile failures of auto parts maker First Brands Group and subprime auto finance company Tricolor Holdings. Capital One’s large exposure to the subprime market left some investors unsure how its loans would hold up,” wrote Jeff Marks, director of portfolio analysis at Club. “As such, it was critical that Capital One once again report strong credit metrics with higher-than-expected net charge-offs and allowances for credit losses.” The club maintained its rating of 1, the equivalent of buy, and its $250 price target. Capital One’s weekly gain of about 6.5% puts it in fifth place among this week’s winners. On Wednesday, GE Vernova reported strong earnings and solid backlog growth. Although management achieved the most important product, the natural gas turbine maker’s stock price still fell due to a downturn in the speculative sector of energy trading. GEV YTD Mountain GE Vernova YTD However, the club maintained a rating of 1, equivalent to Buy, and encouraged members to purchase the stock in the upcoming session. The company also reiterated its target price for GE Vernova at $700. After all, the unprecedented demand for additional electricity due to increased investment in AI data centers is a financial windfall for energy giants like GE Vernova. “This stock is a rocket ship,” Jim said Friday, comparing GE Vernova’s chart pattern to that of Alphabet, Advanced Micro Devices and Oracle before their big gains. GE Vernova was our worst performer this week, down 2.6%, but the stock remains the portfolio’s second-best stock year-to-date, up more than 77%. Honeywell on Thursday released an impressive quarterly report that beat expectations for sales, profits and organic growth. Management also raised the conglomerate’s full-year outlook. But most notable to us has been the recovery in the company’s aerospace division. The financial results will be released in advance of Honeywell’s Oct. 30 spinoff of Solstice Advanced Materials. The separation of the remaining Aerospace & Automation division is expected to be completed in the second half of 2026. HON YTD MOUNTAIN HONEYWELL YTD “These separations will enable each of the three new entities to operate in a more focused and efficient manner, supporting further growth and driving shareholder returns,” Zeb said in an earnings analysis Thursday. The club reiterated its rating on Honeywell’s stock at 1, equivalent to “buy,” and the price target of $255. Honeywell shareholders of record as of October 17 will receive one Solstice share for every four Honeywell shares. Stocks of Solstice and Honeywell, which were the fourth best performers this week, are expected to hold on with gains of nearly 6.5%. Dover gave investors a reason to hang onto the laggard stock on Thursday after the company’s third-quarter profit beat expectations. Management also raised its full-year earnings outlook and highlighted Dover’s potential to benefit from favorable trends such as building AI. DOV YTD Mountain Dover YTD Dover stock had its second best day of 2025 as a result. The club reiterated its Buy rating of 1 and $210 price target. After all, despite Thursday’s stock rally, Dover stock still trades at a deep discount to its peers. Dover was the third best performing stock for the week, gaining about 6.6% over the past five trading days. Ten portfolio names will appear on the filing next week: Amazon, Apple, Bristol-Myers Squibb, Boeing, Corning, Eli Lilly, Linde, Metaplatform, Microsoft and Starbucks. Through all of these, we will explore each theme. As a result, ratings and target stock prices may change. Certainly, quarterly earnings aren’t the only thing that does that. Texas Roadhouse was a case in point this week. We downgraded Texas Roadhouse from a “1” rating, equivalent to a buy, to a “2” rating on Tuesday. Rising beef prices continue to pressure Texas Roadhouse’s margins, and headwinds are likely to continue into 2026. Further complicating matters, management has only been able to slowly weather the beef inflation, raising menu prices as well. Still, I’ll keep it in stock for now. Texas Roadhouse was one of many portfolio moves made this week. I also executed 3 trades. On Tuesday, the club started the position in Corning. The company, known for manufacturing specialty glass, including fiber optic cables, will benefit from the AI build. That’s because the rise of AI will increase demand for the same connected products as they reside in data centers. I also like Corning stock because of its partnership with Apple. The club that owns Apple previously announced a $2.5 billion commitment to Corning, which makes the cover glass for all iPhones and Apple Watches. In the same session, the club posted a profit after Wells Fargo stock rose significantly to an all-time high. We realized a return of approximately 170% on the shares purchased in January 2021. However, this sell-off does not reflect a change in the long-term bullish thesis at the bank. On Friday, we sold some of our Eaton shares, taking advantage of the electronics maker’s recent recovery. Eaton has rebounded since management released a weaker-than-expected third-quarter outlook in early August, slamming the stock. We thought the post-earnings plunge was unwarranted given the success of Electrical Americas, which has benefited greatly from the AI boom. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
