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. We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible. Here is Wednesday’s edition. Market rebound: Stocks are bouncing from Tuesday’s declines, taking their cue from rallying bond prices. This comes a day after stock prices fell and bond yields surged in reaction to the slightly hotter-than-expected consumer price index report (stocks tend to move in the opposite direction of bond yields). The industrial sector is the top performing group in the session but the dip buyers came right back for the mega-cap tech stocks like Nvidia and Meta Platforms , which are also the top two performers in the S & P 500 year to date. Number three is Eli Lilly : the maker of GLP-1 drugs, which treat type 2 diabetes and weight loss, made a brand new all-time high on Wednesday. Cramer said on Tuesday’s Homestretch that “the market is demonstrating a level of orderly retreat that shows how much people really do want to get in,” and that is what is playing out now. Not all green: Two sectors are in the red — consumer staples and energy. Kraft Heinz reported a dip in organic sales due to a 4% decline in volumes. The stock is down more than 6%, weighing down other food stocks and staples. This post-earnings sell-off serves as a good reminder of why it is important to focus on staples that aren’t living off price increases and can demonstrate volume growth. Constellation Brands is a volume-driven story and Procter & Gamble has seen its volumes improve in North America over the last five quarters. Energy is tumbling due to lower oil and natural gas prices. Buying the dips: We took advantage of our large cash position to scoop up shares in a few stocks that were hit hard in Tuesday’s pullback. We bought 70 DuPont shares at a price that was $10 cheaper than where we sold at $76 in January. DuPont’s quarter and guide was one of the more shocking shortfalls this earnings season, but management’s commentary about robust order growth suggests trends will improve. Starbucks pulled back from $97 last week to the low $90s, and we thought this level was a good opportunity to buy shares. Our rationale was that the price was back at the level it traded when the company missed the quarter but didn’t go down. That’s a possible tell that the valuation has found a floor. We are positive on the housing market this year, which is why we think Stanley Black & Decker’s guidance two weeks ago was too conservative. The big dividend yield pays us as we wait for the turnaround thesis to play out. Up next: Several companies report their earnings after the market closes, including Cisco Systems , Twilio , and Occidental Petroleum . On Thursday morning, Deere and Penn Entertainment report, and on the economic data side we’ll see retail sales. (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.
Dupont corporate headquarters in Wilmington, Delaware.
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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. We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible. Here is Wednesday’s edition.
