The CNBC Investing Club with Jim Cramer releases the Homestretch every weekday, providing an actionable afternoon update for the last hour of trading on Wall Street. The latest update highlighted a relatively quiet session on Wall Street to conclude a volatile yet positive September and a strong third quarter. Federal Reserve Chair Jerome Powell indicated that additional rate cuts would be ahead if the economy evolves as expected, but emphasized that the Fed is not on any preset course and is not in a hurry to cut rates. The market reaction to Powell’s comments caused the S & P 500 to trade at its lows of the day.
Disney, a Club name, has quietly had a solid September with shares up about 6% for the month. Despite a disappointing reaction to a good quarter in August, the stock has rallied as the market has become more comfortable with Disney’s outlook. Seaport Research Partners upgraded Disney to a buy, citing an improving macroeconomic outlook and emerging profitability at streaming as factors supporting the stock. Disney’s market valuation is closely tied to the health of its experiences business, making an improving economic outlook beneficial for the stock.
The S & P 500 energy sector is on track to finish the third quarter as the only sector in the red, down more than 3%. Energy woes have been seen throughout the year with the sector being the worst-performing group, up about 5%. The independent exploration-and-production companies have been particularly disappointing within the sector. Despite this, there are still opportunities in the energy space, with natural gas starting to move and trading at its highest levels since late June. Coterra Energy, a disciplined driller, is one of the few winners in the oil-and-gas group and may present value at current levels.
Upcoming earnings reports from payroll processor Paychex and spice maker McCormick are on the horizon, along with economic data releases that could impact market sentiment. The JOLTS report and the September ISM manufacturing index are key indicators to watch, providing insight into the labor market and how the industrials may trade. As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts before Jim makes a trade, with a waiting period before executing the trade. It is important to note that no fiduciary obligation or duty is created from receiving information provided in connection with the Investing Club, and no specific outcome or profit is guaranteed.
