The CNBC Investing Club with Jim Cramer releases the Homestretch update on weekdays, providing actionable information for the last hour of trading on Wall Street. On a recent Thursday, the S & P 500 and Nasdaq lost steam despite initially being up in reaction to positive news from chipmaker Micron. The Wall Street Journal reported that AI server maker Super Micro Computer is being probed by the Department of Justice for possible accounting violations, causing chip stocks to give back some gains. However, this appears to be a Super Micro-specific issue and does not change the strong demand for artificial intelligence chips. Club holding Advanced Micro Devices is maintaining its rally, especially with news that its MI300x AI chips are now available on Oracle’s cloud platform. Other Club holdings are also benefiting from Micron’s report, and consumer and industrial stocks with exposure in China are rallying due to the Chinese government’s commitment to stimulate its economy.
Shares of Wells Fargo surged around 5% after signs of progress in its efforts to clean up operations and have its Federal Reserve-mandated asset cap removed. The bank has submitted a third-party review of its risk and control overhauls to the Fed, with potential removal of the asset cap expected by 2025 at the earliest. This news contradicts the idea that Wells Fargo recently faced a regulatory setback, which caused the stock to drop two weeks prior when deficiencies in financial crimes risk management practices were cited. Subsequently, Club holding Costco was set to report after the closing bell, with investors focused on profit margins, member churn after a fee increase, and the company’s plans to reinvest fee income into the business.
Additionally, there were no major earnings reports set for the following Friday, but economic data was expected to show the August PCE price index, the Fed’s preferred inflation indicator. The consensus estimates pointed to a 0.1% month-over-month increase and a 2.3% year-over-year rise, slightly lower than the previous month. Core inflation, which excludes food and energy prices, was expected to show a 0.2% month-over-month increase and a 2.7% year-over-year rise, slightly higher than the previous month. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, with a waiting period before execution to ensure transparency and compliance with regulations.
Overall, the information provided by the CNBC Investing Club is subject to terms and conditions, privacy policy, and disclaimer, with no fiduciary obligation created by receiving the information. While no specific outcomes or profits are guaranteed, subscribers benefit from timely updates and insights from Jim Cramer to navigate the dynamic world of investing. By highlighting key market developments, stock movements, and economic data, the Homestretch update aims to provide actionable information to help investors make informed decisions in the fast-paced environment of Wall Street trading.
