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: Stocks are up Friday thanks to gains in the Magnificent 7 stocks ex- Apple and Telsa , but the S & P 500 is still on pace for its second weekly decline in a row. The upbeat reaction to Amazon ‘s results on Thursday is lifting the index. Amazon’s plans to spend $75 billion in capital expenditures this year is surely a good sign for the health of the AI infrastructure build-out thesis. In fact, Citi pointed out Friday that the combined AI spending this year from Alphabet , Microsoft , Meta , and Amazon is $10 billion above the consensus. And they all will spend even more next year. That has to be positive for the chip stocks with strong AI exposure. Watching rates: Friday’s job report caused volatility in the bond market, but not in the way you might think. Job gains were muted in October. The economy added 12,000 jobs in the month, well below estimates of 100,00. As you’ve probably heard all day, the data was noisy due to the impact of multiple hurricanes and the Boeing union strike. And it was good to see the unemployment hold steady at 4.1%. But the negative revisions of 112,00 jobs over the prior two months was a sign that the job market has lost some of its momentum. The first move in the bond market was that rates went down as the probability of the Fed cutting rates by 25 basis points increased for the next two meetings. The Federal Open Markets Committee’s November meeting is next Thursday. Even though traders upped their bets on more easing, others are shorting Treasuries (pressuring prices and increasing rates) in a bet that the Fed will make a wrong move. They think more cuts will cause inflation to reaccelerate, and that’s why the 10-year Treasury yield surged Friday after the initial dip. It’s too early to know who will be right, but these are the forces at work right now. Next week We’ve made it through the earnings gauntlet but still about one-fifth of the S & P is scheduled to report next week. In the portfolio, we’ll see earnings from DuPont on Tuesday. Outside of earnings, there are two major events: Tuesday is the U.S. presidential election and, as mentioned, Thursday is the Fed meeting. (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.
Trucks travel through a flooded road while exiting from an Amazon delivery station in Carlstadt, New Jersey, U.S., on Tuesday, Oct. 13, 2020.
Bloomberg | Bloomberg | Getty Images
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.
