The CNBC Investing Club with Jim Cramer provides daily updates in the form of the Homestretch, which offers actionable insights for the last hour of trading on Wall Street. The S & P 500 was holding onto a post-Fed rally, with Federal Chairman Jerome Powell easing concerns by suggesting that rate cuts would be considered only when inflation reaches the 2% target. Recent data showed an uptick in inflation, leading to a reevaluation of expectations for Fed rate cuts. Jim Cramer believes that cutting rates unnecessarily risks re-igniting inflation, and he remains cautious about the need for rate cuts in the current economic climate.
The Club added to its positions in Linde and Stanley Black & Decker, both of which reported encouraging quarters but were being unfairly punished by the market. Linde’s mixed results and light guidance are viewed as conservative, while Stanley Black & Decker beat earnings and revenue expectations and reaffirmed its outlook. The Club also increased its holdings in TJX Companies, anticipating that the company will benefit from consumers turning more cautious. Despite modest gains, TJX stock has trended lower recently, presenting a buying opportunity for the Club.
Despite being troubled portfolio names, Estee Lauder and Foot Locker saw their shares perform well on Thursday, with both companies experiencing a bounce. Bausch Health, another embattled name, reported quarterly results that led to a significant drop in share price due to ongoing legal issues and uncertainties surrounding the company’s Bausch + Lomb stake. In the upcoming earnings reports, Club name Apple is expected to release its quarterly results after the closing bell, with investor caution advised before making any decisions regarding the stock.
As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts before Jim executes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio, and waits 72 hours after discussing a stock on CNBC TV before executing the trade. The information provided by the Investing Club is subject to terms and conditions, privacy policy, and disclaimer, and there is no guaranteed outcome or profit associated with the information provided. Members are encouraged to exercise caution and conduct their own research before making investment decisions based on the Club’s updates.
