Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch – an actionable afternoon update, just in time for the final hour of Wall Street trading. (We’re no longer recording the audio, so we can get this new written feature out to members as soon as possible.) Going Defensive: Typically, the market likes falling Treasury yields and stocks grow with bonds. Lower rates can make dividends look more attractive on a relative basis and expand the amount investors are willing to pay for the stock. But that’s not what’s at play on Tuesday. The market is mixed with a distinctly defensive shift even as rates fall. The groups trading higher are consumer staples and healthcare, while more economically sensitive sectors such as materials, energy, banking and industrials lagged behind. You tend to see staples and healthcare perform better when the market is worried about economic growth, and that has played out over the past two sessions after a weak ISM manufacturing report on Monday and a big shortfall in the Openings Survey of Labor and Labor Circulation of the Department of Labor (JOLTS) on Tuesday. Selling in effect? As the market falls in love with the staples today, the question becomes: Should we sell on this strength, take profits on Procter & Gamble and allocate that cash to buy a company with a stronger growth outlook? “We took some P&G off this level in May,” Cramer said, “but I have to admit I think the stock is vulnerable once again.” It’s a good debate to have, but with the market just rediscovering these names on Tuesday, we can wait and see if we can cut a few points higher. On the other hand, the 1.3% increase at Costco “is indicative of how the market is looking at the consumer, which is very stretched,” Cramer said. “I think it does a disservice to Costco, whose value appeals to all kinds of consumers. That’s why it’s not falling as usual after earnings.” Power outages: Jim notes that the market is still dealing with Dell’s backlog, which grew 30% year-over-year but fell short of the side’s “whisper number” of stronger purchase. Although Dell’s stock is stabilizing after falling more than 20% since earnings, the electrical equipment and power generation theme that rallied on expectations of AI data center construction has struggled to find a footing. her. “We can’t seem to mount any kind of rally for Club Eaton and Dover stocks. I think they should be bought on this weakness,” Cramer said. Next: After-the-bell earnings from CrowdStrike, the cybersecurity leader that has never missed a quarter. On Wednesday morning we’ll hear from several discount retailers at Dollar Tree and Ollie’s Bargain Outlet, and some consumer goods companies at Campbell Soup and Brown-Forman. On the data front, we’ll see another on Wednesday in the labor market from the ADP employment report and then services from the May ISM Services report. (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a share in his charitable trust portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. MESIPERM INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR ACCEPTANCE OF ANY INFORMATION PROVIDED IN CONNECTION WITH INVESTOR CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Dell Technologies CEO Michael Dell speaks during the MWC session “New Strategies for a New Era” on the first day of the 18th edition of the Mobile World Congress (MWC) at the Fira de Barcelona venue on Gran Via in L ‘Hospitalet de Llobregat on February 26. , 2024, in Barcelona, ​​Catalonia, Spain.
Kike Rincon | Europa Press | Getty Images
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch – an actionable afternoon update, just in time for the final hour of Wall Street trading. (We’re no longer recording the audio, so we can get this new written feature out to members as soon as possible.)
