April was a tough month for the stock market, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq ending the month on a down note and breaking their five-month winning streaks. A drop in the stock market during April is rare, as it is typically one of the strongest months of the year. Bond yields rose after another hotter-than-expected inflation report, raising concerns that the Federal Reserve’s interest rate hikes have not been enough to control inflation. The Fed’s rate decision was scheduled for the following day, with no policy changes expected. Despite earlier hopes for rate cuts, Jim Cramer has stated that the Fed does not need to cut rates anytime soon.
The CNBC Investing Club is recommending buying the dip in shares of GE Healthcare, which experienced a 13% decline after earnings. Despite the stock dropping to just over $77, the Club believes it is time to battle and upgrades the stock back to a buy-equivalent 1 rating. GE Healthcare missed on both top and bottom lines in the first quarter but maintained full-year guidance. Constellation Brands, another Club name, was also down on Tuesday due to industry comments, but recent data shows no slowdown in Constellation’s beer portfolio, which includes popular brands like Modelo and Corona.
In addition to GE Healthcare’s earnings, Eli Lilly and Eaton reported their earnings on Tuesday. Lilly’s shares rose 5.5% after providing strong guidance, while Eaton’s stock dropped more than 2% despite a quarterly beat and guidance raise. Jim Cramer recommends buying Eaton on the dip for investors who don’t already own the stock. Club names Amazon and Starbucks were set to report earnings after the closing bell on Tuesday. Investors were focusing on the growth of Amazon Web Services (AWS) and the potential impact of sluggish sales in the US and China on Starbucks’ performance. Market watchers were also interested in whether the Middle East boycotts would continue to affect Starbucks, as they have with McDonald’s.
As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts before Jim makes a trade. There is a waiting period after the trade alert is issued before Jim buys or sells a stock in his charitable trust’s portfolio. If a stock is discussed on CNBC TV, Jim waits 72 hours before executing the trade. Members should be aware of the terms and conditions, privacy policy, and disclaimer governing the Investing Club. While no specific outcome or profit is guaranteed, the Club provides timely updates and insights to help guide investment decisions in the ever-changing market environment.
