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.) Odd day : If I told you Wednesday night that Nvidia would soar 10% after reporting strong earnings and giving great guidance, you probably would have thought the S & P 500 would be up huge the next day. However, things were not playing out anything like that. After the initial higher open, stocks sold off and Treasury yields climbed in reaction to stronger-than-expected purchasing managers numbers, which came out at 9:45 a.m. ET. Remember, the market is in one of those counter-intuitive moments right now where certain “good” economic news is being perceived as “bad” news for stocks. Good economic data means the Federal Reserve will likely keep interest rates higher for longer to combat inflation, which is negative to the bull thesis. The Dow was leading the way down Thursday afternoon, with a roughly 1.5%. The S & P 500 was down about half that amount and the Nasdaq was down less than 0.5% because Nvidia shares held on to most of their gains. Cash ready : Should we see more market turbulence on interest rate fears, we would be ready to step in and buy with the cash we have sitting on the sidelines. In addition, there are several names in our Bullpen waiting to be initiated on more weakness, such as industrial company Dover and solar firm Nextracker . No Love yet : We get how the broader market selling off is weighing on stocks of all different types, but we were still surprised about this lukewarm reaction to DuPont ‘s plan to break up into three separate companies. Already we’ve seen Mizuho and Jefferies raise their price targets to $100 and $101, respectively, based on their sum-of-the-parts (SOTP) math. Our back-of-the-envelope math got us to $100 as well. We expect several more analysts will raise their price targets in the days to come. If we were not restricted from trading it, we would have been buyers of DuPont on Thursday. Coming up: We’re through most of the major earning reports of the week, but there are still a few big ones left after Thursday’s close. There are off-price retailer in Ross Stores , athletic footwear company Deckers Outdoor , the HR management company Workday , and Intuit , which owns QuickBooks and TurboTax. (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.)
