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.) Markets: The S & P 500 on Monday gave back its early gains, but was on track for only a slight decline. The market entered Monday in overbought condition, according to the S & P Short-Range Oscillator, following the S & P 500’s nearly 2% gain last week. The index has had a quick rebound back toward its March 28 all-time closing high, so it’s not surprising to see some choppiness and have the market enter a holding pattern ahead of big economic readings in the coming days. The April consumer price index report Wednesday morning is the release that could have the most implications for the ongoing inflation debate. AI updates: ChatGPT creator OpenAI made a handful of announcements Monday, including a new model called GPT-4o , which features improved capabilities in text, video and audio. Basically, Microsoft -backed OpenAI’s new model allows a user to speak directly to the application and listen back to its response. We continue to believe the rise of these AI models and the increased computing power they require will spark a new consumer electronics upgrade cycle, lifting sales of smartphones, tablets and personal computers. Since this technology is still so new, it may take a few quarters to see this thesis play out at Best Buy . However, we started buying in late March because we wanted to be early to the story. The stock’s current 5% dividend yield pays us for our patience. Something that caught our eye toward the end of OpenAI’s webcast: Chief Technology Officer Mira Murati thanked Nvidia CEO Jensen Huang and the team at the leading AI chipmaker “for bringing us the most advanced [graphics processing units] to make this demo possible today.” Nvidia shares were slightly higher Monday, shaking off earlier losses. New Bullpen name: We’re always on the hunt for new ideas, which is why we’re adding industrial equipment maker Dover Corp. to our watchlist of stocks known as the Bullpen. The Illinois-based company organizes its business into five operating segments: Engineered Products; Clean Energy & Fueling; Imaging and Identification; Pumps & Process Solutions; and Climate & Sustainability Technologies. Dover has exposure to “mega themes” such U.S. CO2 systems, where regulatory tailwinds are driving the transition toward natural refrigerants, and so-called heat exchangers, which are popular in the data center among other settings. Additionally, its thermal connectors business is a critical component in liquid cooling systems for data center chips. Finally, its biopharma components unit is benefiting from the same industry recovery as longtime Club holding Danaher. Jim’s quick takes: Apple is laying the groundwork to start selling its mixed-reality headset, the Vision Pro, in international markets, Bloomberg News reported Monday . The device, which starts at $3,499, launched in the U.S. in February. “Selling the Apple Vision Pro overseas is great but it all means little until we have more programs and applications written for it,” Jim Cramer said Monday. “That’s what will matter,” otherwise its price tag is too high for most consumers. To be sure, we’re bullish on its enterprise adoption . We continue to monitor the economic landscape in China, where a recovery in consumer spending would benefit our companies with operations there. Recent government data suggests that Chinese consumer prices in April increased for a third consecutive month. “Estee Lauder? China is starting to see some inflation, per its CPI report, which means the consumer is spending more,” Jim said. Up next: There are no major earning report Monday after the bell. Tuesday is busy, with the U.S. government’s wholesale inflation report, known as the producer price index, due out at 8:30 a.m. ET. On earnings, we’ll hear from Alibaba and Home Depot, which starts a big week for retail. (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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