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.) Market moves: We’ll have to see if the S & P 500 ‘s rebound Tuesday holds. Late in the session, the index was right around the flatline. A higher close would extend gains to a fourth straight session, lifting the broad market measure back toward 5,200 and about 1% away from its closing high in March. A downward move in bond yields continues to support the recent comeback. Yields pushed lower last Wednesday after Federal Reserve Chairman Jerome Powell eased concerns about potential policy interest rate hikes to combat stubborn inflation. The stock market’s move higher continued into the end of last week on a “bad news is good news” reaction to Friday’s soft jobs report. A “bad news is good news” reaction may seem counter-intuitive because a strong economy means higher corporate profits. But in this case, it was a relief for the market under the thinking that a little weakness and some “brownshoots” (Jim Cramer’s term for the opposite of “greenshoots”) is what could be necessary to reverse the recent bond yield flare up in inflation data. “The beat and no raise selloff in Builders FirstSource is, once again, a sign that without a rate cut, our two rate plays Best Buy and Stanley Black & Decker are not going to be able to advance,” Cramer explained Tuesday. “We have to be patient in those two, but at least we will collect the big dividends as we wait.” Jim added, ” Logitech is on Mad Money tonight, and we will talk about all of the new AI-related devices that will help Best Buy sales.” Crude swings: Oil remains volatile due to uncertainty in the Middle East. After West Texas Intermediate fell a few dollars below $80 per barrel, the Energy Department issued a press release indicating its intent to buy 3.3 million barrels of crude to refill the nation’s Strategic Petroleum Reserve (SPR). That’s not a needle-moving amount but notable because it shows the U.S. government’s ongoing willingness to buy oil in the high $70s. While there’s certainly a war premium currently built into the price, we wonder whether ongoing SPR refills could put in a floor around these levels? Coterra is still our preferred energy name, especially after last week’s beat and oil production outlook increase. In a delayed reaction to the quarter, analysts at Susquehanna increased their Coterra price target to $33 from $32 late Monday. Disney slide : Disney has been unable to shake Tuesday’s roughly 10% decline after warning of a softer fiscal 2024 third quarter. While missing on fiscal Q2 revenue, Disney did beat quarterly estimates on earnings. “One of the reasons activist investor Nelson Peltz challenged the company was that he feared that there would be not one, but two weak quarters, not made up by cost cuts. It looks like it is playing out just as Peltz said it would,” Jim said. Having said that, we’re glad we sold a ton of stock a lot higher and now that’s it come down from those sales we think it is getting interesting again. Apple buzz: Apple unveiled a new iPad Pro — featuring its new, more powerful M4 chip — and an iPad Air with the M2. While releasing new, higher-priced iPad models for the first time since 2022 should help sales in this product line, these kinds of product events are generally anticipated well ahead of time. They’re incremental to the bullish story but don’t lead to material moves in the stock. We’ve been saying the more important event to focus on is Apple’s annual Worldwide Developers Conference (WWDC) next month. That’s when Apple is expected to unveil artificial intelligence software features that will be integrated into new iPhones, a key catalyst that could jumpstart a big upgrade cycle for the flagship device. Maybe we’ll also hear more software news concerning the Vision Pro? Jim has been bullish on the impact the mixed reality Vision Pro headset could have in future quarters due to compelling business-to-business use cases and adoption. Up next: After Tuesday’s closing bell, we’ll see earnings from Club stock Wynn Resorts . We expect the results from the casino operator to show more progress in Macao, as the recovery in the Asian gambling hub develops, and continued strength in Las Vegas. A few other notable earnings releases: Arista Networks , Rivian, Occidental Petroleum, Lyft, Dutch Bros and Reddit. Arista Networks’ stock has doubled in the past year on AI spending for its networking equipment. Some of the earnings to watch Wednesday morning are Uber , Shopify, Affirm, and Emerson Electric. (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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