Week in review: Behind the stock market's wild swings – plus, 7 trades we made

Market Overview - Stocks experienced a rebound on Friday, with the Dow Jones Industrial Average and the S&P 500 each gaining about 1%, while the Nasdaq Composite rose 0.9%. However, these gains were not sufficient to recover earlier losses for the week, with the S&P 500 and Dow both down approximately 2% and the Nasdaq down 2.7% [1] - New York Fed President John Williams indicated that a rate cut in December remains a possibility, citing labor-market weakness as a greater threat to the economy than inflation. Market expectations for a 25-basis-point rate cut next month surged to about 71%, a significant increase from 39% the previous day [1] Company Earnings - Nvidia reported strong quarterly earnings that exceeded Wall Street estimates, leading to a rally in tech stocks. The company raised its current-quarter sales guidance, prompting a price target increase from $225 to $230 [1] - Home Depot missed quarterly earnings expectations and lowered its full-year outlook, resulting in a decline in shares. The price target was adjusted down from $440 to $420 [1] - TJX Companies beat earnings estimates across all operating segments for the third consecutive quarter, although shares fell due to profit-taking. The price target was raised from $150 to $160 [1] - Palo Alto Networks delivered a strong quarter, exceeding estimates on key metrics and announcing the acquisition of Chronosphere for approximately $3.35 billion, which could enhance its growth prospects [1] Portfolio Adjustments - The investment club initiated a new position in Procter & Gamble, citing its strong growth track record and consistent organic sales growth over 40 consecutive quarters [1] - The club reduced its position in Disney by half following a disappointing earnings report, realizing a 3% gain on shares purchased between 2022 and 2023 [1] - Eli Lilly's stock reached an all-time high, surpassing $1 trillion in market capitalization, leading to a price target increase from $925 to $1,100, while the rating was downgraded to a hold-equivalent [1] - The club also increased its position in Corning amid market weakness, viewing it as an opportunity to acquire shares of a leader in fiber optic cables [2]