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January 12, 2025

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Market Pullbacks Provide Opportunities to Build your WatchList – Here’s How

The stock market is in pullback mode with the S&P 500 EW ETF down 5.15% over the past month and down 1% year-to-date. This makes it a good time to monitor relative performance and create a relative strength watch list. Stocks and ETFs holding up best during pullbacks often lead when the market regains its footing. Today’s report will show a starter list and analyze the chart for an AI Robotics ETF.

The table below shows 1-month and year-to-date performance for a selection of industry group ETFs. With the S&P 500 EW ETF down on both timeframes, ETFs with gains are holding up well and ETFs with smaller losses show relative strength (less weakness). Five ETFs are up on both timeframes and holding up well in the face of broad market weakness.

Note that this list is simply the first cut. I would make a further cut by insuring that the ETF is in a long-term uptrend. For example, the Clean Energy ETF (PBW) is below its 200-day SMA and would not make the cut. The Medical Devices ETF (IHI) and Robotics AI ETF (ARTY) are in long-term uptrends, and make the cut. Let’s look at ARTY. A recent Chart Trader report/video highlighted the recent breakout in IHI.

The chart below shows ARTY hitting a new high in early December and price above the rising 200-day SMA. ARTY is in a long-term uptrend. There was a big breakout in mid October, an oversold reading in late October and then a 17% run to new highs. ARTY then formed a pennant and broke out with a surge earlier this week, only to fall back the last three days. Overall, I think the pennant breakout is still bullish and this is a throwback to the breakout zone. A break below the pennant lows would negate this pattern and argue for a deeper correction.

Chart Link

The middle window shows the price-relative (ARTY/RSP Ratio) breaking above its 200-day SMA in late November. ARTY shows relative strength and the price-relative hit a new high in early January. The lower window shows %B, which I use to identify oversold conditions within an uptrend. A dip below 0 means the close is below the lower Bollinger Band. This means there was a pullback within the uptrend, which is an opportunity.

I will be following ARTY and other leading ETFs closely in the Chart Trader reports and videos. Our reports warned of the breakout in the 10-yr Treasury Yield in before Christmas (HERE) and we also showed how to distinguish between a robust bounce and a dead cat bounce (HERE).

Click here to take Chart Trader trial and get immediate access.

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Here’s Why The Bottom Is Dropping Out of the Dow Jones

To understand what makes the Dow Jones tick, you have to first understand one of the key differences between the Dow Jones and the S&P 500 indices. There are a few, but none more critical than the following:

Index Weighting

The S&P 500 is market-cap weighted, meaning that companies with the highest market capitalization have a stronger hand in moving the S&P 500 index value. Currently, these are the companies that play the largest role in moving this benchmark index, including their weighting:

  • AAPL – 7.58%
  • NVDA – 6.59%
  • MSFT – 6.27%
  • AMZN – 4.11%
  • GOOGL – 4.02%

These are 5 of the Mag 7 stocks and they carry 28.57% of the entire weighting of the benchmark S&P 500 index. It’s easy to see how the S&P 500 can be swayed easily by the performance of just these 5 stocks.

Well, guess what? We need a cute lil name for the Top 5 price-weighted stocks in the Dow Jones, because their collective weight is 32.43% of the entire Dow Jones Industrial Average. The Dow Jones, by contrast, is a price-weighted index. The highest priced stock carries the most weight, while the lowest priced stock carries the least weight. Market capitalization plays NO role in the weighting. Want to know who the “Fabulous 5” are? Here ya go:

  • GS – 8.25%
  • UNH – 7.29%
  • MSFT – 6.07%
  • HD – 5.60%
  • CAT – 5.22%

All 5 of these stocks now trade beneath their declining 20-day EMAs and only one (MSFT) still shows a 20-day EMA above its 50-day SMA. In other words, 4 of the 5 have experienced “death crosses”, which are bearish technical developments.

Looking at the RRG

Here’s another way to look at the change that’s taken place within the Fabulous 5, just over the past 5-6 weeks. But before we do that, let’s first pull up the chart of the entire Dow Jones:

Heading into December, there was a solid uptrend on the Dow’s absolute chart and mostly sideways relative action after a very strong relative performance in July. Since early December, even late November, everything has headed south on the Dow Jones.

We can now take a look at an RRG as of early December to show how the Fab 5 were leading at that time:

This shows how each of the Fab 5 were performing relative to the benchmark S&P 500. 4 of the 5 were situated on the right side of the chart in the leading or weakening quadrants. This means they were relative leaders. Now, just a handful of weeks later, check out how these 5 stand relative to the S&P 500:

All 5 are currently residing on the left side of this chart, indicative of relative weakness, not strength. Momentum is building in the majority of the companies, so if that continues, we could begin to see relative outperformance of the Dow Jones again. For now, though, caution is the word.

One last thing. I’ve updated my Dow Jones Components ChartList and have numbered them 1 to 30, in price order, which reflects the highest-weighted to lowest-weighted stocks in the Dow Jones. I’m sorting this ChartList based on 1-month performances (SCTR scores are also reflected):

Of the 7 worst 1-month performers, 5 of them are in the Top 7 in terms of market weight. In other words, many of the worst recent performers in the Dow Jones also happen to be among the most heavily-weighted. Also, it’s important to note that many of the top-weighted Dow Jones stocks are also among the worst relative performers, as measured by SCTR scores (StockCharts Technical Rank, a form of relative strength). This combination is what has been crushing the Dow Jones. Until this changes, the Dow Jones will remain under relative pressure vs. the other major indices.

My Favorite Dow Jones Component

There are a number of ways to rank the potential of the various Dow Jones component stocks for 2025 and, obviously, it depends on your criteria. But I’ll be providing my FAVORITE Dow Jones stock (and why) for 2025 in Monday’s EB Digest, our 100% free newsletter. If you’re not already an EB Digest subscriber, and you’d like to check out my pick for 2025, please CLICK HERE and enter your name and email address. Again, it’s completely free and there’s no credit card required!

Happy trading!

Tom

5 Best-performing Canadian Pharma Stocks (Updated January 2025)

From established players to up-and-coming firms, Canada’s pharmaceutical company landscape is diverse and dynamic.

Canadian drug companies are working to discover and develop major innovations amidst an increasingly competitive global landscape. Rising technologies such as artificial intelligence are playing a role in the landscape as well.

Read on to learn about what’s been driving the share prices of the best performing Canadian pharma stocks.

1. NurExone Biologic (TSXV:NRX)

Press ReleasesCompany Profile

Year-over-year gain: 147.27 percent
Market cap: C$34.08 million
Share price: C$0.68

NurExone Biologic is the biopharmaceutical company behind ExoTherapy, a drug delivery platform that uses exosomes, which are nano-sized extracellular vesicles, to create treatments for central nervous system disorders, spinal cord injuries and traumatic brain injuries. It is a less invasive alternative to cell transplantation, which requires surgery and carries the risk of rejection.

NurExone’s first nano-drug, ExoPTEN, uses a proprietary sIRNA sequence delivered with the ExoTherapy platform to treat spinal cord injuries. ExoPTEN received orphan drug designation from the US Food and Drug Administration (FDA) in October 2023, meaning it has been recognized as a potential treatment for rare medical conditions. The designation makes it eligible for incentives such as market exclusivity and regulatory assistance aimed at accelerating its development and approval.

In December 2024, the company released preclinical results from animal testing evaluating the efficacy of its nano-drug ExoPTEN in restoring lost vision. The lead investigator at the Goldschleger Eye Institute, which collaborated on the study, said the results were ‘extremely encouraging,’ and ‘suggest that ExoPTEN could fundamentally change how we approach conditions like glaucoma and optic nerve trauma.’

2. Cipher Pharmaceuticals (TSX:CPH)

Company Profile

Year-over-year gain: 140.88 percent
Market cap: C$377.18 million
Share price: C$14.26

Cipher Pharmaceuticals is a specialty pharma company with a diverse portfolio of treatments, including a range of dermatology and acute hospital care products. The company has out-licensed some of its offerings as well. Cipher began trading on the OTCQX Best Market under the symbol CPHRF in early 2024.

In addition to its current portfolio, Cipher has acquired Canadian rights to CF-101, a dermatology treatment for moderate to severe plaque psoriasis is currently expected to undergo Phase III clinical trials. The company is also conducting proof-of-concept studies on DTR-001, a topical treatment for removing tattoos.

On July 29, Cipher announced it had signed a definitive asset purchase agreement with ParaPRO for its US-based Natroba operations and global product rights, and the news caused Cipher’s share price to spike significantly. The company’s Q3 2024 results showed a product gross margin from the acquired Natroba products of 85 percent.

3. Satellos Bioscience (TSXV:MSCL)

Company Profile

Year-on-year gain: 88.89 percent
Market cap: C$95.99 million
Share price: C$0.85

Satellos Bioscience is a Canadian pharmaceutical company expanding treatment options for muscle disorders. The company has focused specifically on Duchenne muscular dystrophy, developing therapies to regenerate and repair muscle tissue by targeting the specific biological pathways involved. Its lead candidate SAT-3247 targets a protein called AAK1, which regulates the activity of stem cells that activate and differentiate new muscle fibers.

An acceptance to commence Phase 1 clinical trials of the drug was announced on August 19 and the first patient was dosed on September 18. Analysis of tests conducted on canines, shared on October 1, showed improved muscle morphology and increased muscle regeneration with no adverse side effects.

An update was provided in November, revealing it had begun enrolment for a multiple-ascending-dose arm of the Phase 1 study after no drug-related adverse events were reported in the single-ascending-dose group.

4. Telescope Innovations (CSE:TELI)

Press ReleasesCompany Profile

Year-over-year gain:81.4 percent
Market cap: C$20.39 million
Share price: C$0.39

Telescope Innovations is a chemical technology company that develops scalable manufacturing processes and tools that combine robotic automation, online analysis and machine learning for the pharmaceutical and chemical industries.

The company has commercialized its Direct Inject-LC system. Short for Direct Inject Liquid Chromatography, the system combines hardware and software to analyze chemical reactions and can potentially reduce the time and cost of new drug development.

On July 31, Telescope Innovations entered into a collaborative research agreement with pharma giant Pfizer (NYSE:PFE) to accelerate pharmaceutical research and development using automation, robotics and artificial intelligence.

According to a press release, some efforts will focus on deploying Self-Driving Laboratories, a concept pioneered by Telescope Innovations in which robotic systems carry out experiments while AI algorithms analyze the data in real time to inform researchers about what the next steps should be.

5. Medexus Pharmaceuticals (TSX:MDP)

Company Profile

Year-over-year gain: 46.47 percent
Market cap: C$100.34 million
Share price: C$3.94

Medexus Pharmaceuticals specializes in bringing drugs to treat rare diseases to North America. The company manages the entire process through its fully integrated operations, from acquiring and developing drugs to marketing and selling them. Some of its key products include treatments for hemophilia B and rheumatoid arthritis, as well as a line of drugs for autoimmune diseases like lupus and allergy treatments.

In November 2024, Medexus Pharmaceuticals announced it had successfully negotiated with the pan-Canadian Pharmaceutical Alliance to make treosulfan, which Medexus commercialized in Canada under the name Trecondyv, available to publicly funded drug programs and patients. Trecondyv is indicated as part of conditioning treatment prior to bone marrow transplants in patients with certain types of blood cancers.

In addition to Canada, Medexus has the exclusive commercialization rights to treosulfan in the US, where it currently being reviewed by the FDA for approval. The FDA extended the review period for the new drug application for treosulfan in September and set a new prescription drug user fee act target action date of January 30, 2025.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Cybersecurity Stocks: 10 Biggest Companies in 2025

Cybercrime is a growing concern, and it’s estimated that the annual cost of fighting cyber crime will reach US$10.5 trillion by 2025. Cybersecurity companies are working to address the challenge.

The list from eSecurity Planet features 20 privately held and publicly traded cybersecurity companies across a range of stock exchanges. The firm employed criteria such as user reviews, product features and benefits, analyst reports, independent security tests and use cases to evaluate companies in the cybersecurity sector.

The largest cybersecurity companies by market cap shown below are all listed on the NASDAQ and NYSE. Stock data was current as of market close on January 9, 2025.

1. Microsoft (NASDAQ:MSFT)

Company Profile

Market cap: US$3.16 trillion
Share price: US$424.56

The largest cybersecurity company by market cap is Microsoft. The tech giant is a major player in the cloud security market, which includes cloud native application protection platform (CNAPP) products and services. In fact, Microsoft is the largest CNAPP solution provider, according to KeyBanc Capital.

Prominent cybersecurity firm Security Risk Advisors recently became a member of the Microsoft Intelligent Security Association.

2. Broadcom (NASDAQ:AVGO)

Company Profile

Market cap: US$3.16 trillion
Share price: US$424.56

Global technology firm Broadcom has built a large portfolio of embedded and mainframe security solutions, as well as payment authentication software.

The company broadened its offerings with the Symantec Enterprise Cloud in November 2019 with the acquisition of the enterprise software division of Symantec, which has since changed its name to Gen Digital (NASDAQ:GEN). Broadcom’s Symantec offerings include secure access service edge technologies and zero-trust security.

3. Cisco Systems (NASDAQ:CSCO)

Company Profile

Market cap: US$235.78 billion
Share price: US$59.20

For a number of years now, Cisco Systems has increasingly invested in boosting its cybersecurity services. Today, the company offers an array of products for cloud security, endpoint security and security analytics. To address the cybersecurity skills shortage, Cisco offers certification programs for IT professionals.

In response to rising security risks in AI-powered applications, Cisco acquired Robust Intelligence, a company specializing in protecting AI systems from vulnerabilities and attacks, in September 2024.

4. IBM (NYSE:IBM)

Company Profile

Market cap: US$206.36 billion
Share price: US$223.18

IBM’s security division offers customers an advanced and integrated portfolio of enterprise security products and services. IBM X-Force helps businesses and organizations integrate security solutions into their everyday functions and provides help with risk assessment, incident detection and threat response. The company is harnessing the power of AI to combat cybersecurity threats.

In May 2024, IBM announced new X-Force Red testing services that focus on identifying and mitigating vulnerabilities in generative AI applications and models. Like Cisco, IBM also offers cybersecurity certification programs.

5. Palo Alto Networks (NASDAQ:PANW)

Company Profile

Market cap: US$113.41 billion
Share price: US$172.83

Palo Alto Networks bills itself as “the global cybersecurity leader.” The company’s security portfolio includes advanced firewalls and cloud-based offerings that protect more than 80,000 organizations across their clouds, networks and mobile devices.

An example of its more recently launched offerings include Prisma Cloud, which integrates AI across various security domains, including network security, cloud security and security operations. In October 2024, Palo Alto expanded its offerings to the industrial sector.

6. CrowdStrike Holdings (NASDAQ:CRWD)

Company Profile

Market cap: US$88.36 billion
Share price: US$358.72

CrowdStrike Holdings is a software-as-a-service solutions provider. This team of cybersecurity professionals uses advanced endpoint detection and response applications and techniques in its machine-learning-powered antivirus protection offerings to ensure breaches are stopped before they occur.

This is another major cybersecurity company that is incorporating AI, adding it to its security information and event management (SIEM) offerings.

Its new AI-powered functions for its Falcon Next-Gen SIEM platform were first released in May 2024, including the integration of its Charlotte AI. Then, in July, CrowdStrike announced its Falcon Complete Next-Gen MDR service, which incorporates data from its SIEM platform and AI capabilities.

7. Fortinet (NASDAQ:FTNT)

Company Profile

Market cap: US$73.61 billion
Share price: US$96.04

Fortinet provides end-to-end cybersecurity infrastructure products and services, such as firewalls, antivirus tools, intrusion prevention and endpoint security. The company’s cybersecurity platform can address critical security challenges and can protect data across digital infrastructure systems, whether in networked, application, multi-cloud or edge environments. Fortinet’s client base includes major sports teams, including the Vancouver Canucks NHL hockey team and the Pittsburgh Steelers NFL football team.

8. Zscaler (NASDAQ:ZS)

Company Profile

Market cap: US$28.74 billion
Share price: US$187.78

Cloud security company Zscaler’s Zero Trust Exchange platform can be used to secure user-to-app, app-to-app and machine-to-machine communications over any network. The company also offers cloud migrating services. Zscaler is known for setting the standard in the field of security service edge, and it claims the Zero Trust Exchange is the world’s most-used security service edge platform.

In December 2024, the company expanded its partnership with IT services and consulting company Cognizant (NASDAQ:CTSH) as the pair work together to help enterprises address cyber threats by providing an advanced, AI-enabled zero trust cloud security platform.

9. Check Point Software (NASDAQ:CHKP)

Company Profile

Market cap: US$20.15 billion
Share price: US$183.19

Check Point Software is part of the unified threat management sector, and it offers a wide variety of products to protect users on mobile, networks and the cloud. It also provides users with various security management services to prevent future cyber attacks and data breaches.

Check Point acquired Avanan, a cloud email and collaboration security company, in 2021. At the end of 2024, technological research and consulting firm Gartner recognized Check Point as a leader in the 2024 Gartner Magic Quadrant for Email Security Platforms.

10. Okta (NASDAQ:OKTA)

Company Profile

Market cap: US$14.64 billion
Share price: US$85.46

Okta is an identity and access management company that provides cloud software solutions for managing and securing user authentication, as well as building identity controls into applications, website services and devices. The company is investing in AI technologies to monitor customer signals and proactively identify potential risks.

Gartner recognized Okta as a Leader in the 2024 Gartner Magic Quadrant for Access Management for the eighth consecutive year.

FAQs for cybersecurity

Is cybersecurity a growing industry?

Cybersecurity is a growing industry — according to Statista, it has a projected CAGR of 7.58 percent between 2025 and 2029, which will allow it to reach a market value of US$271.9 billion. The largest segment within the cybersecurity market is security services, while cloud security is forecast to experience the fastest growth.

What are the current trends in cybersecurity?

Today’s top trends in cybersecurity include improvements in preventing and mitigating attacks against cloud services, growth in internet of things devices, the integration of artificial intelligence and machine learning, multi-factor identification and the increasing threat of deepfakes. Cybersecurity companies addressing these current issues in the market may have an advantage in attracting investor attention.

Which cybersecurity stocks pay dividends?

Very few cybersecurity stocks pay dividends; however, Cisco Systems and Juniper Networks (NYSE:JNPR) are two companies that offer dividend payments to their shareholders. Both pay quarterly dividends, with Cisco sporting an annual dividend yield of 2.7 percent, while Juniper Networks comes in at 2.29 percent. The average annual dividend yield for companies in the overall technology sector is 3.2 percent.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Stock Futures Lower after S&P 500 futures ticked down 0.18%

Stock futures are trading slightly lower Monday morning as investors gear up for the final month of 2024. S&P 500 futures slipped 0.18%, alongside declines in Dow Jones Industrial Average futures and Nasdaq 100 futures, which dropped 0.13% and 0.17%, respectively. The market’s focus is shifting to upcoming economic data, particularly reports on manufacturing and construction spending, ahead of this week’s key labor data releases.

November was a standout month for equities, with the S&P 500 futures rallying to reflect the index’s best monthly performance of the year. Both the S&P 500 and Dow Jones Industrial Average achieved all-time highs during Friday’s shortened trading session, with the Dow briefly surpassing 45,000. Small-cap stocks also saw robust gains, with the Russell 2000 index surging over 10% in November, buoyed by optimism around potential tax cuts.

As trading kicks off in December, investors are keeping a close eye on geopolitical developments in Europe, where France’s CAC 40 index dropped 0.77% amid political concerns, while Germany’s DAX and the U.K.’s FTSE 100 showed smaller declines.

S&P 500 futures will likely continue to act as a key barometer for market sentiment, particularly as traders assess the impact of upcoming economic data and global market developments.

S&P 500 Index Chart Analysis

This 15-minute chart of the S&P 500 Index shows a recent trend where the index attempted to break above the resistance level near 6,044.17 but retraced slightly to close at 6,032.39, reflecting a minor decline of 0.03% in the session. The candlestick pattern indicates some indecisiveness after a steady upward momentum seen earlier in the day.

On the RSI (Relative Strength Index) indicator, the value sits at 62.07, having declined from the overbought zone above 70 earlier. This suggests that the bullish momentum might be cooling off, and traders could anticipate a short-term consolidation or slight pullback. However, with RSI above 50, the overall trend remains positive, favoring buyers.

The index’s recent low of 5,944.36 marks a key support level, while the high at 6,044.17 could act as resistance. If the price sustains above the 6,020 level and RSI stabilizes without breaking below 50, the index could attempt another rally. Conversely, a drop below 6,020 could indicate a bearish shift.

In conclusion, the index displays potential for continued gains, but traders should watch RSI levels and price action near the support and resistance zones for confirmation.

The post Stock Futures Lower after S&P 500 futures ticked down 0.18% appeared first on FinanceBrokerage.

S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7%

Stock futures climbed on Wednesday, driven by strong performances from Salesforce and Marvell Technology, following upbeat quarterly earnings. Futures tied to the Dow Jones Industrial Average rose by 215 points (0.5%), while S&P 500 futures gained 0.3%, and Nasdaq-100 futures advanced by 0.7%.

Salesforce surged 12% after reporting fiscal third-quarter revenue that exceeded expectations, showcasing robust demand in the enterprise software sector. Meanwhile, chipmaker Marvell jumped 14% after surpassing earnings estimates and providing optimistic fourth-quarter guidance, indicating resilience in the semiconductor industry.

This movement follows a mixed session on Wall Street, where the S&P 500 and Nasdaq closed with small gains, while the Dow dipped slightly. The broader market has experienced a modest start to December, contrasting with November’s robust rally, but analysts anticipate a resurgence in momentum. LPL Financial’s George Smith pointed out that December historically sees strong market performance, particularly in the latter half of the month.

However, economic data introduced some caution. ADP’s report revealed that private payrolls grew by just 146,000 in November, missing estimates of 163,000. This signals potential softness in the labor market, with investors now awaiting Friday’s November jobs report for further clarity.

S&P 500 Index Chart Analysis

Based on the provided stock chart, which appears to be a 15-minute candlestick chart for the S&P 500 Index, here’s a brief analysis:

The chart shows a clear upward trend, with higher highs and higher lows indicating bullish momentum over the analyzed period. The index has steadily climbed from a low of approximately 5,855 to a recent high of 6,053.58, suggesting strong buying interest.

Key resistance is observed near 6,050-6,053 levels, as the price has struggled to break above this zone in the most recent sessions. If the index breaches this level with strong volume, it could lead to further upward movement. Conversely, failure to break out may lead to a pullback, with potential support around the 6,000 psychological level and 5,980, where consolidation occurred previously.

The candlestick patterns show relatively small wicks, indicating limited volatility, which could imply steady market confidence. However, the bullish rally could be overextended, warranting caution for traders, especially if any negative catalysts emerge.

In summary, the short-term trend is bullish, but traders should monitor resistance levels and volume for signs of a breakout or reversal. It’s also essential to watch broader market factors, as indices are often influenced by macroeconomic data and sentiment.

The post S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7% appeared first on FinanceBrokerage.

Meta announces end of its DEI programs. Read the memo.

Meta on Friday told employees that its plans to end a number of internal programs designed to increase the company’s hiring of diverse candidates, the latest dramatic change ahead of President-elect Donald Trump’s second White House term.

Janelle Gale, Meta’s vice president of people, made the announcement on the company’s Workplace internal communications forum.

Among the changes, Meta is ending the company’s “Diverse Slate Approach” of considering qualified candidates from underrepresented groups for its open roles. The company is also putting an end to its diversity supplier program and its equity and inclusion training programs. Gale also announced the disbanding of the company’s diversity, equity and inclusion, or DEI, team, and she said that Meta Chief Diversity Officer Maxine Williams will move into a new role focused on accessibility and engagement.

Several Meta employees responded to Gale’s post with comments criticizing the new policy.

“If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies,” one employee posted in a comment that got reaction from more than 600 colleagues.

The DEI policy change follows a number of sweeping policy reversals by the social media company this month. Last week, Meta replaced global affairs head Nick Clegg with Joel Kaplan, a veteran at the company with longstanding ties to the Republican Party. On Tuesday, Zuckerberg announced a new speech policy that included bringing an end to the company’s third-party fact-checking program.

Axios was first to report the DEI changes at the social media company. Meta didn’t immediately provide a comment.

You can read Gale’s memo, which CNBC obtained, in full below:

Hi all,

I wanted to share some changes we’re making to our hiring, development, and procurement practices. Before getting into details, there is some important background to lay out:

The legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States is changing. The Supreme Court of the United States has recently made decisions signaling a shift in how courts will approach DEI. It reaffirms long standing principles that discrimination should not be tolerated or promoted on the basis of inherent characteristics. The term “DEI” has also become charged, in part because it is understood by some as a practice that suggests preferential treatment of some groups over others.

At Meta, we have a principle of serving everyone. This can be achieved through cognitively diverse teams, with differences in knowledge, skills, political views, backgrounds, perspectives, and experiences. Such teams are better at innovating, solving complex problems and identifying new opportunities which ultimately helps us deliver on our ambition to build products that serve everyone. On top of that, we’ve always believed that no one should be given — or deprived — of opportunities because of protective characteristics, and that has not changed.

Given the shifting legal and policy landscape, we’re making the following changes:

On hiring, we will continue to source candidates from different backgrounds, but we will stop using the Diverse Slate Approach. This practice has always been subject to public debate and is currently being challenged. We believe there are other ways to build an industry leading workforce and leverage teams made up of world-class people from all types of backgrounds to build products that work for everyone.

We previously ended representation goals for women and ethnic minorities. Having goals can create the impression that decisions are being made based on race or gender. While this has never been our practice, we want to eliminate any impression of it.

We are sunsetting our supplier diversity effort within our broader supplier strategy. This effort focused on sourcing from diverse-owned businesses; going forward, we will focus our efforts on supporting small and medium sized businesses that power much of our economy. Opportunities will continue to be available to all qualified suppliers, including those who are part of the supplier diversity program.

Instead of equity and inclusion training programs, we will build programs that focus on how to apply fair and consistent practices that mitigate bias for all, no matter your background.

We will no longer have a team focused on DEI. Maxine Williams is taking on a new role at Meta focused on accessibility and engagement.

What remains the same are the principles we’ve used to guide our People Practices:

We serve everyone. We are committed to making our products accessible, beneficial and universally impactful for everyone.

We build the best teams with the most talented people. This means sourcing people from a range of candidate pools but never making hiring decisions based on protected characteristics, (e.g., race, gender, etc.). We will always evaluate people as individuals.

We drive consistency in employment practices to ensure fairness and objectivity for all. We do not provide preferential treatment, extra opportunities or unjustified credit to anyone based on protected characteristics. Nor will we devalue impact based on these characteristics.

We build connection and community. We support our employee communities, people who use our products and those in the communities. We operate our employee community groups (MRGs) continue to be open to all.

Meta has the privilege to serve billions of people every day. It is important to us that our products are accessible to all, and useful in promoting economic growth and opportunity around the world. We continue to be focused on serving everyone and building a multi-talented, industry-leading workforce from all walks of life.

This post appeared first on NBC NEWS