The stock market is continuing to see gains, with the market higher on Monday and extending its gains over the past three sessions to nearly 3%. This comeback is attributed to the market not fighting against bonds, as volatility in the bond market calmed down after Federal Reserve Chair Jerome Powell ruled out a rate hike as the committee’s next move. Yields also moved lower after a softer-than-expected April jobs report on Friday. However, concerns are raised about the speed at which the rally is happening, with the S & P Oscillator showing the market as overbought at 4.45% entering the week. As a precaution, a position was trimmed and cash was raised out of discipline.
In terms of specific stocks, Starbucks had disappointing earnings results last week, prompting speculation about potential operational changes and the possibility of activist investors getting involved. Jim Cramer noted that given the involvement of Mellody Hobson in CEO selection in the past, he expects changes to happen. With Apple’s positive earnings behind us, attention is now turned to its upcoming events, including an iPad event that is not expected to be major and the Worldwide Developers Conference in June, where new AI features may be announced. Nvidia is performing well in the market and is close to its all-time high close on March 25, rebounding after entering correction territory in April. Eli Lilly is also making a strong comeback after a choppy week, with the stock surging after raising its full-year sales outlook.
Earnings to watch after the bell include Palantir, Axon Enterprise, and Simon Property Group. Disney reports earnings on Tuesday before the opening bell, with a focus on cost-cutting and narrowing losses in its direct-to-consumer business. Other notable earnings releases include Celsius, Datadog, and Rockwell Automation. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, with a waiting period before execution to allow time for consideration. It is important to note that the information provided in connection with the Investing Club is subject to terms and conditions, privacy policy, and disclaimer. There is no guaranteed outcome or profit, and no fiduciary obligation or duty is created by receiving information from the Investing Club.
Overall, the market is experiencing gains and momentum, with the recent rally attributed to calming volatility in the bond market and positive news from the Federal Reserve. Specific stocks such as Starbucks and Apple are under scrutiny for their recent performance and potential future developments. Earnings reports from various companies are eagerly awaited, with a focus on Disney’s cost-cutting measures and performance in the direct-to-consumer sector. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts and updates to stay informed and make informed decisions. As always, caution and discipline are key in navigating the market and managing investments.
