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.) Strong bounce: The S & P 500 was on pace Monday afternoon to break a streak of six down days in a row. The market was finally getting help from tech stocks, which were coming off a brutal week in which the Nasdaq dropped nearly 5.5%. (The S & P 500 fell 3% last week.) Financials were also leaders Monday, with Wells Fargo as one of a handful of stocks in the S & P 500 making a new 52-week high Monday. In fact, Wells Fargo traded as high as $61.49 per share Monday, back to levels not seen since early January 2018. The stock hit its all-time, intraday high of $66.31 on Jan. 29, 2018. Ford rallies: Ford was our best-performing portfolio stock Monday and one of the top-performing stocks in all of the S & P 500. Interestingly, the roughly 6% single-session bump higher came after Tesla announced another round of price cuts across its electric vehicles due to softening demand. Two years ago, an EV price war would have been a disaster for Ford because it meant bigger operating losses. But now that CEO Jim Farley has pivoted back toward hybrids and legacy internal combustion engine (ICE) vehicles, slower adoption of EVs by consumers means Ford’s lineup has a lot more runway. Ford will report earnings after Wednesday’s closing bell. We expect to hear Farley reiterate this emphasis on producing cars that make money. Abbott formula: One of the reasons we keep buying shares of Abbott Laboratories , despite litigation around its formula for premature infants, is the product is viewed as a critical part of the standard of care by the medical community. Underscoring the importance of baby formula in supporting preterm infants, the NEC Society put out a statement last Friday on the Watson vs. Mead Johnson verdict. Mead Johnson is a formula rival of Abbott and owned by Reckitt Benckiser. Litigation concerns have weighed on Abbott since the mid-March ruling. While we cannot ignore potential litigation, we reiterate this feels very different from Johnson & Johnson ‘s talc troubles because Abbott had a warning label on the formula, which doctors have also approved as live-saving nutrition. We remain buyers of Abbott on weakness, especially after the beat and raise in the first quarter , which increased our confidence in the company’s operations. Coming up: A few of the big companies reporting after the bell are Cleveland-Cliffs, Nucor, SAP, and Cadence Design Systems, which is a close partner to Club name Nvidia . Tuesday has earnings from Club name Danaher as well as General Motors, UPS, GE, PepsiCo, RTX Corp, Lockheed Martin, Freeport-McMoRan, and Sherwin Williams. We’re also watching the Treasury market’s ability to digest a $69 billion auction of 2-year notes. (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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