The Homestretch, a daily update from the CNBC Investing Club with Jim Cramer, provides members with actionable insights for the last hour of trading on Wall Street. The stock market has responded positively to recent good jobs data, viewing it as good news regardless of its implications for the timing of the first interest rate cut from the Federal Reserve. Strong job gains with moderating wage growth are seen as a positive scenario for the U.S. economy. The market has remained resilient despite the anticipation of a Fed rate cut, with other factors such as lack of new escalations in the Middle East contributing to the recent market rally. It is advised to focus on what Fed Chairman Jerome Powell says rather than on day-to-day Fedspeak.
Ford received a price target upgrade from Morgan Stanley based on the automaker’s decision to delay production of new all-electric vehicles in favor of its more profitable hybrid offerings. The slower adoption of electric vehicles is seen as beneficial for legacy U.S. automakers like Ford, as it could lead to reduced losses and increased earnings. Ford’s strategy pivot is expected to boost free cash flow and increase potential returns to shareholders, potentially through buybacks rather than special dividends. General Motors’ successful buyback last year has positively impacted its stock price, highlighting the potential benefits of such actions.
Top weekly performers in the CNBC Investing Club portfolio included Meta Platforms, Eaton, Wynn Resorts, and Amazon. Meta Platforms gained traction in the ad market with generative AI tools, while Eaton rallied on analyst upgrades and Wynn Resorts surged on positive Macao gross gaming revenue data. Amazon hit a new 52-week high and saw positive momentum based on various factors. On the other hand, the worst performers in the portfolio included Foot Locker, Estee Lauder, Palo Alto Networks, and TJX Companies, with retail stocks facing challenges due to poor earnings and high gasoline prices. Costco and TJX are considered opportunities for investment given their market share gains.
As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts before Jim makes a trade, with a waiting period of 45 minutes or 72 hours depending on the circumstances. It is important to note that the information provided by the Investing Club is subject to certain terms and conditions, privacy policy, and disclaimers. There is no fiduciary obligation or duty created by receiving information from the club, and no specific outcome or profit is guaranteed. Members are encouraged to stay informed and make informed investment decisions based on the insights provided by the club.
