Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.) April showers : The Dow Jones Industrial Average , the S & P 500 and the Nasdaq on Tuesday were set to end a terrible April on a down note and break their five-month winning streaks. An April drop in the stock market is quite rare since it’s typically one of the strongest months of the year. Bond yields popped higher again Tuesday, following the before-the-bell release of another hotter-than-expected inflation report. The first-quarter employment cost index, which tracks worker salaries and benefits, rose 1.2%, adding to market concerns that the Federal Reserve’s 11 interest rate hikes since March 2022 have not been enough to stamp out inflation. Rate watch : The Fed, which began its latest two-day policy meeting Tuesday, will deliver its rate decision Wednesday afternoon. Fed chief Jerome Powell will hold his post-meeting news conference at 2:30 p.m. ET. No policy changes are expected. The recent run of higher inflation readings has certainly quelled, if not quashed, the rate-cut euphoria from earlier this year. Jim Cramer has said repeatedly the Fed does not need to cut anytime soon. Buy the dip : Shares of GE Healthcare were suffering a 13% post-earnings decline to just over $77 each Tuesday. We admit we should have taken some profits on the Club name when shares were around $90 last month. Jim said during the Morning Meeting that it was a mistake for which he feels terrible about. But he also said it’s time to battle. That means the Club is upgrading shares of the medical equipment company back to our buy-equivalent 1 rating . We would be buyers Tuesday if not restricted. Despite the misses on the top and bottom lines in the first quarter, GE Healthcare management maintained full-year guidance. King of beers : Club name Constellation Brands was falling more than 2.5% on Tuesday due to Molson Coors comments about a weak April for the beer industry. TAP shares were much worse off, sinking more than 8% on the session. However, recent scanner data has shown no discernable slowdown in Constellation’s beer portfolio, which includes Modelo and Corona. Club earnings : In addition to GEHC’s earnings, Eli Lilly and Eaton reported earnings Tuesday morning. Lilly shares rose 5.5% after the world’s most valuable drugmaker provided the kind of strong guidance that smooths out the rough spots. After making another all-time high earlier in the session, shares of Eaton dropped more than 2% in afternoon trading. The electric component and power management company delivered a quarterly beat and guidance raise. Jim said Tuesday morning that investors who don’t own the stock should buy some on the dip. Up next : Club names Amazon and Starbucks report earnings after Tuesday’s closing bell. Growth in cloud unit Amazon Web Services (AWS) will main focus for investors. That’s especially true after strong numbers from Microsoft ‘s Azure and Alphabet ‘s Google Cloud. We’re not expecting a good quarter from Starbucks but believe a stock price under $90 per share already reflects that. Starbucks has seen sluggish sales the U.S. and China. Will the Mideast boycotts that have hurt Starbucks in the recent past continue to be a drag? They were for McDonald ‘s, which reported a weak quarter before the bell. However, McDonald’s shares were unchanged Tuesday, a sign the shortfall was already well-telegraphed. — CNBC’s Jeff Marks contributed to this report. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.)
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