The CNBC Investing Club with Jim Cramer releases the Homestretch every weekday, providing an afternoon update just in time for the last hour of trading on Wall Street. The broader market struggled to hold onto its early gains, despite positive news such as lower-than-expected initial jobless claims and a solid expansion in the ISM services index. However, the Magnificent 7 stocks had a strong day, with most trading in positive territory, while healthcare was led lower by McKesson after providing a disappointing earnings forecast for its fiscal second quarter. Procter & Gamble continues to face challenges in China, with CFO Andre Schulten noting that the market is stabilizing but not yet showing signs of recovery. The company’s performance in China will be a key factor in determining its organic sales growth outlook.
Procter & Gamble spoke at the Barclays Global Consumer Staples Conference, revealing that 85% of its business is growing solidly, in line with pre-Covid trends, while the remaining 15%, including sales in China, remains soft due to low consumer confidence and value-seeking behavior. Schulten explained that if normalization occurs in China and the Middle East situation stabilizes, Procter & Gamble could reach the upper end of its sales growth outlook. However, continued slowdown in China or other negative developments could push the company towards the lower end of the range. Despite concerns about China, PG remains on the short list of stocks that could perform well in the event of an economic hard landing. Earnings from Broadcom, Samsara, and DocuSign were scheduled for release after the close, with market focus shifting to the non-farm payroll report on Friday.
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