September hasn't been kind to the stock market. Yet at least on the final trading day of the month, Wall Street found itself in a better mood, with major market benchmarks climbing to begin the day. Favorable news on the inflation front helped buoy investor sentiment, at least temporarily.

The Dow Jones Industrial Average (^DJI 0.40%) has largely marched to its own tune lately -- it lost less ground in 2022 than other benchmark indexes, but it has also posted weaker positive returns than they have so far in 2023. On Friday, Dow component Nike (NKE 0.19%) reported favorable quarterly results that sent its stock jumping in early trading. However, Nike isn't close to being the Dow's best performer year to date. That honor belongs to Salesforce (CRM 0.42%), and the promise of artificial intelligence could keep the tech stock moving higher.

Nike climbs sharply despite tepid growth

Shares of Nike were up by nearly 9% in the first half-hour of trading on Friday morning. The gains for the athletic gear giant came after it reported its fiscal 2024 first-quarter financial results, and the extent of the move higher in the stock price reflected just how low expectations for the company were.

For the period, which ended Aug. 31, Nike brought in $12.9 billion in revenue, up just 2% year over year. Nike's direct-to-consumer unit fared slightly better, with a 6% sales growth rate. However, wholesale revenue was flat. Some weakness in gross margin helped contribute to lackluster results on the bottom line as well, as net income fell 1% to $1.5 billion. Earnings per share rose 1% to $0.94 due to extensive stock buybacks that lowered the outstanding share count enough to offset the company's lower net income.

Yet investors were pleased to see evidence that Nike had taken some effective steps to solve what had been lingering problems. Inventory levels plunged 10% to $8.7 billion, showing the success of efforts to pare down bloated backlogs of merchandise. Perhaps more importantly, Nike said that it would pay more attention to core areas like running shoes as it tries to concentrate on its most profitable business lines.

Nike is optimistic that demand will recover in the coming year, particularly in important regions such as China. Despite persistent fears of a recession in North America and macroeconomic pressures elsewhere, investors think Nike's products command brand loyalty in a way that should support the company's long-term prospects. Yet even with Friday's gains, Nike stock is still down about 17% year to date.

Salesforce rides the AI wave

Elsewhere, shares of Salesforce were up 2%. That put the customer relationship management software pioneer among the top performers in the Dow on Friday, and it extended gains that have pushed the stock more than 50% higher so far in 2023.

Salesforce's strength has come from two key aspects of its business strategy. First, the company has established itself as an AI stock  player as it moves to offer generative AI versions of its Einstein data analytics platform, its Slack workplace communications software, and its Tableau reporting system. Early demand from users has been encouraging, and Salesforce is likely to keep emphasizing AI development for the foreseeable future.

Second, Salesforce is aiming to become more efficient. By focusing on cutting costs where possible, Salesforce has already seen its operating margin levels soar. That has contributed to upward revisions in earnings guidance, which shareholders have really appreciated.

Nike is a strong company and should do well in the long run. But in terms of timeliness, Salesforce has more upward momentum right now, and its artificial intelligence efforts could remain a powerful tailwind for growth well into the future.