The Homestretch is an actionable afternoon update provided by the CNBC Investing Club with Jim Cramer, aiming to inform members just in time for the last hour of trading on Wall Street. On a recent trading day, U.S. stocks were wobbly but traded well off their worst levels of the session. The market was headed towards a down session due to disappointing reactions to earnings, that have had mixed results. While there have been many earnings beats, the lack of raises to full-year outlooks has left investors wanting more. Concerns about stagflation, where economic growth stagnates but inflation remains high, also weighed on the market, along with rising bond yields.
Despite the market being down significantly in early trading, there were pockets of green as certain groups of stocks bounced back. Utilities led the charge due to concerns about sluggish economic growth, while energy, materials, and industrials also saw gains. Technology stocks started the day weak but rallied thanks to semiconductor companies like Nvidia and Broadcom, which received support from Club name Meta Platforms for its AI initiatives. Meta was one of the largest drags on the market after providing soft revenue guidance, but Jim Cramer expressed interest in buying back the stock based on Mark Zuckerberg’s potential to monetize Gen AI.
Upcoming earnings reports from Microsoft and Alphabet were anticipated, with the market looking to their guidance for market sentiment. These reports, along with what they have to say about AI-related capital expenditures, could impact the market significantly. Friday was expected to be busy with the release of the personal consumption expenditures price index for March, as well as earnings reports from Exxon Mobil, Chevron, Abbvie, Colgate-Palmolive, and HCA Holdings. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, with specific waiting periods in place before executing trades mentioned on CNBC TV.
The CNBC Investing Club with Jim Cramer operates under specific terms and conditions, as well as a privacy policy and disclaimer. No fiduciary obligation or duty is created by receiving information from the club, and no specific outcome or profit is guaranteed. Members of the club receive timely updates and insights on market trends, earnings reports, and potential investment opportunities. The club’s focus on actionable information in the Homestretch update allows members to stay informed and potentially make informed decisions in the final hours of trading on Wall Street. By following Jim Cramer’s recommendations and insights, members have the opportunity to navigate the stock market with valuable information at their disposal.
