The Homestretch, a daily update from the CNBC Investing Club with Jim Cramer, provides members with actionable information for the last hour of trading on Wall Street. U.S. stocks were down on Thursday but traded well off their lows, as disappointing reactions to earnings and concerns about stagflation weighed on the market. The lack of raises to full-year outlooks from companies reporting earnings has not met the expectations of bullish investors. The bond market has also been a challenge for stock bulls, with the 10-year Treasury yield hitting its highest level in over five months.
Despite the overall market decline, there were pockets of green in certain sectors. Utilities led the way, followed by energy, materials, and industrials. Tech stocks were weak at the start of the day, but a rally in semiconductor stocks, including Nvidia and Broadcom, helped bring the sector into positive territory. Meta Platforms, a Club name, was a major drag on the market after providing soft second-quarter revenue guidance. However, Jim Cramer expressed interest in buying back some shares, as he believes in CEO Mark Zuckerberg’s vision for monetizing Gen AI.
Earnings reports from Microsoft and Alphabet were set to be released after the bell on Thursday. These two tech behemoths have a significant impact on market sentiment due to their large weightings in the S&P 500. Investors were also watching for guidance on AI-related capital expenditures, as seen in the rally of Nvidia and Broadcom following Meta Platforms’ news. Friday was expected to be busy, with the release of the personal consumption expenditures price index for March and earnings from Exxon Mobil, Chevron, Abbvie, Colgate-Palmolive, and HCA Holdings.
As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts before Jim makes a trade. Jim follows a specific timeline for executing trades, waiting 45 minutes after sending a trade alert and 72 hours after discussing a stock on CNBC TV. It is important to note that there is no fiduciary obligation or duty created by receiving information from the Investing Club, and no specific outcome or profit is guaranteed. Members should be aware of and agree to the terms and conditions, privacy policy, and disclaimer associated with the Club.
