The CNBC Investing Club with Jim Cramer releases the Homestretch, an afternoon update perfect for the last hour of trading on Wall Street. The stock market viewed the recent good jobs data positively, despite concerns about inflation. Strong job gains with moderate wage growth can be beneficial for the U.S. economy. The lack of new escalations in the Middle East also contributed to Friday’s market rally, highlighting the importance of monitoring global events. Fed Chairman Jerome Powell’s comments on rate cuts align with previous sentiments from Cramer and the club, emphasizing the need to focus on Powell’s statements rather than day-to-day Fedspeak.
Morgan Stanley analyst Adam Jonas raised the price target on Ford to $17 per share, following the automaker’s decision to delay the production of new electric vehicles. The focus on profitable hybrid offerings is expected to reduce losses and capital expenditures, positively impacting earnings and cash flow. Ford’s strategy pivot should lead to greater cash returns to shareholders, potentially through buybacks, given the low valuation and substantial dividend yield. General Motors’ successful buyback last year could serve as a positive example for Ford.
The top performers in the club’s portfolio for the week included Meta Platforms, Eaton, Wynn Resorts, and Amazon. Meta benefited from positive commentary on its AI tools, while Eaton received multiple analyst upgrades. Wynn Resorts’ stock surged on strong gaming revenue data from Macao, and Amazon reached new highs on positive notes. Conversely, Foot Locker, Estee Lauder, Palo Alto Networks, and TJX Companies were among the worst performers due to various factors such as poor retail earnings and gasoline price increases. Opportunities in market-leading companies like Costco and TJX are being evaluated despite the retail sector’s challenges.
Subscribers to the CNBC Investing Club will receive trade alerts before Jim Cramer makes any changes to the portfolio. There is a waiting period before executing trades to ensure transparency and compliance with regulations. Terms, conditions, privacy policy, and disclaimers apply to all information provided by the club, without creating a fiduciary obligation. Guaranteed outcomes or profits are not promised, emphasizing the importance of prudent investing decisions based on research and expert advice.
