Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: The S & P 500 is on track for its fourth straight session of gains, extending its run to record highs. Earnings are the main story of the day, especially from companies tied to artificial intelligence. Semiconductor maker Marvell Technology is one of the biggest gainers in the market thanks to strong sales of its custom AI chips and a forecast of accelerating revenue growth. Marvell’s gains are spreading across the semiconductor group, lifting shares of Club stocks like Broadcom , Nvidia and Advanced Micro Devices , as well as other companies like Micron , which makes memory chips. Software stocks also are having a day in reaction to the 9% move in Salesforce after its quarter Tuesday night . Although Salesforce’s results were generally in line, the company’s bullish Agentforce update has many believing it can get back to double-digit topline growth. We raised our price target on the stock to $400 a share in response to the quarter. Tools and tariffs: At an investor conference Wednesday, Stanley Black & Decker CFO Patrick Hallinan outlined the toolmaker’s strategy to manage potential headwinds under another Donald Trump presidency. It was a similar strategy management outlined at its capital markets day on Nov. 20. Hallinan said that if Trump’s vows for higher tariffs are implemented, Stanley Black & Decker plans to blunt the impact of the levies by repositioning its supply chain, shifting production away from China and raising prices to offset additional costs. The finance chief reiterated his previous forecast that Trump’s threat of 60% tariffs on Chinese goods could hit the company’s pretax operating income by roughly $200 million per year. Last month , the company forecasted a 12-to-24 month timeline to mitigate a significant portion of the potential tariff increase through supply chain changes. “We’re going to have to continue reducing our U.S. market exposure to the China market,” Hallinan said at Goldman Sachs’ Industrials and Materials Conference. “Irrespective of what administration came in, we were going to be on this journey.” Trump’s proposed tariffs, however, might just “accelerate this pace,” added. As for looming price hikes, management didn’t share any specific figures around increases and likely won’t until Trump officially takes office. Still, Hallinan said the DeWalt owner has been in communication with suppliers about potential outcomes. “As soon as the election results were known, we started having conversations with our supply chain partners.” He said the company’s priority is to “be working in a very proactive, transparent and forthright manner with [them.]” As shareholders, here’s where we stand now: We are concerned about the impact tariffs on Chinese imports will have on Stanley Black & Decker, especially after Trump announced Wednesday that Peter Navarro — a serious China hawk — will serve as senior counselor for trade and manufacturing in his second administration. From a portfolio management point of view, we want to have less tariff risk ahead of Inauguration Day next month. However, we don’t want to lose exposure to home improvement theme because housing turnover is at a 30-year low and the pent-up demand will be unleashed when mortgage rates fall. To balance the two, we are downgrading our rating on Stanley Black & Decker to a 3 rating – meaning sell into strength – and we’re planning to use those future sales proceeds to buy more Home Depot , which has much less exposure to tariffs and should still participate in the upside from lower mortgage rates. Up next: After the closing bell Wednesday, we’ll get quarterly results from a number of companies. The list includes cybersecurity play SentinelOne , apparel retailer American Eagle Outfitters , discount retailer Five Below , chip design firm Synopsys , Calvin Klein owner PVH , and defense contractor AeroVironment . Companies reporting before Thursday’s opening bell include Dollar General , Zales parent Signet Jewelers , and grocery giant Kroger . (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
