The Homestretch is an afternoon update provided by the CNBC Investing Club with Jim Cramer, aimed at informing members just in time for the last hour of trading on Wall Street. The recent market dip saw stocks starting the second quarter with a decline, following a positive move last week that sent the S & P 500 to another record high. This rally pushed the S & P 500 Short Range Oscillator into overbought territory, prompting some sales to be made earlier in Monday’s session. Higher interest rates also contributed to the market dip, with the yield on the 10-year Treasury note spiking 13 basis points to about 4.32%, affecting rate-sensitive sectors and stocks like commercial real estate, utilities, and housing-related companies.
One of the sales made on Monday was in Disney, as well as Alphabet. With Disney’s strong year-to-date performance, the decision was made to rightsize the position, which had become the largest by weighting in the portfolio. This sale occurred ahead of Disney’s annual shareholder meeting, where the outcome of Trian Partners’ Nelson Peltz’s campaign for board seats will be revealed. Bank of America raised its price target on Disney to $145 from $130, citing strong momentum in its business, which analysts reiterated with a buy rating. The market also saw concerns about consumer spending, as reflected in the struggles of companies like Starbucks, Nike, and Lululemon. Best Buy shares were purchased last week, based on the belief that a new personal computer buying cycle could impact same-store sales later this year.
The first quarter of the year has come to a close, so the earnings front remains relatively quiet. PVH Corp., owner of brands like Tommy Hilfiger and Calvin Klein, reported after the close on Monday, while Paychex, a payroll and human resources firm, reported on Tuesday morning. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, waiting 45 minutes before executing it. If discussed on CNBC TV, trades are executed 72 hours after the trade alert is issued. Members must be aware of the Terms and Conditions, Privacy Policy, and Disclaimer, as no fiduciary obligation or duty exists through the information provided by the Investing Club, with no guaranteed specific outcome or profit.
The Homestretch provides members of the CNBC Investing Club with timely updates on market movements and actionable insights as they approach the last hour of trading on Wall Street. Recent market activity has seen a decline after a positive move last week, with the S & P 500 reaching another record high. Factors contributing to the dip include overbought territory following a rally and pressure from higher interest rates, impacting rate-sensitive sectors and stocks. Sales were made in Disney and Alphabet, with Disney’s strong performance prompting a rightsize of the position as it became the largest in the portfolio. Concerns about consumer spending have been highlighted, with struggles seen in companies like Starbucks, Nike, and Lululemon.
Investors in the CNBC Investing Club with Jim Cramer are provided with insights into recent market developments, including the impact of the market dip and factors such as overbought territory and higher interest rates. Sales were made in Disney and Alphabet to address the company’s strong performance and the need to rightsize the position. Concerns about consumer spending have also been raised, with companies like Starbucks, Nike, and Lululemon facing challenges. Best Buy shares were purchased as part of an investment strategy based on a new personal computer buying cycle impacting same-store sales later in the year. Members receive timely trade alerts from Jim Cramer before executing trades, with a waiting period to ensure appropriate decision-making. The importance of understanding the Terms and Conditions, Privacy Policy, and Disclaimer is emphasized, as there is no guaranteed outcome or profit from the information provided by the Investing Club.
