Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch, an actionable afternoon update aimed at providing members with timely information for the last hour of trading on Wall Street. This new written feature replaces the audio recordings to ensure that members receive the information as quickly as possible. The market was up on Monday, driven by the performance of two “Magnificent 7” stocks that have underperformed all year – Tesla and Apple. Tesla saw a significant jump of over 15% after CEO Elon Musk received approval from the Chinese government for its driver-assistance system. Meanwhile, Apple experienced a boost after a long-time bear at Bernstein Research turned bullish just before an expected weak earnings report.
Despite the positive performance of these laggards, some discipline calls were made, including trimming the Wells Fargo position due to the stock’s strong performance since the beginning of March, which pushed its weighting to the 5% threshold. This decision was made in light of two significant economic events taking place later in the week – the Fed meeting on Wednesday and the jobs report on Friday, which could potentially impact the banking sector. Looking ahead, there are several key earnings reports scheduled for the following day, including companies like Eaton, GE Healthcare, Eli Lilly, PayPal, 3M, McDonalds, Coca-Cola, Amazon, Starbucks, Advanced Micro Devices, and Super Micro.
As a subscriber to the CNBC Investing Club with Jim Cramer, members will receive trade alerts before Jim makes any trades. There is a waiting period of 45 minutes after sending a trade alert before buying or selling a stock in Jim’s charitable trust’s portfolio, and a 72-hour waiting period after discussing a stock on CNBC TV before executing the trade. It is important to note that the information provided by the Investing Club is subject to their terms and conditions, privacy policy, and disclaimer. There is no fiduciary obligation or duty created by receiving the information, and no specific outcome or profit is guaranteed.
The outlook for Apple, despite ongoing concerns about sluggish iPhone sales in China, is seen as potentially more cyclical than structural by Bernstein Research, who believe that the company’s performance in China could serve as a “clearing event” for the stock, similar to past experiences in 2019 and 2023. The company’s upcoming earnings report is eagerly anticipated, as it may provide insight into Apple’s future trajectory. Additionally, the performance of Tesla, driven by positive developments in China, has caught the attention of investors, further contributing to the market’s upward momentum.
The decision to trim the Wells Fargo position was driven by the stock’s strong performance and the need for discipline amidst potentially market-moving events. The upcoming economic events, including the Fed meeting and jobs report, are expected to have an impact on the banking sector, prompting caution and strategic adjustments. With a lineup of key earnings reports from various companies, there is anticipation and interest in the market’s reaction to these updates. Overall, the CNBC Investing Club with Jim Cramer aims to provide members with timely and actionable information to navigate the complexities of the financial markets and make informed investment decisions.
