The Homestretch released by the CNBC Investing Club with Jim Cramer provides an afternoon update for the last hour of trading on Wall Street. In a recent update, it was noted that Wall Street was having a relatively quiet session to wrap up a volatile yet positive September and a strong third quarter. Federal Reserve Chair Jerome Powell spoke at the National Association for Business Economics conference in Nashville, indicating that the Fed may implement additional rate cuts if the economy evolves as expected. However, Powell mentioned that the Fed is not on a preset course and is not in a hurry to cut rates. The market reacted to this news, with the S & P 500 trading at its lows for the day.
Shares of Disney have quietly been performing well in September, up about 6% for the month. The stock has rallied after concerns about a moderation in spending at its theme parks following a disappointing quarter. An improving macroeconomic outlook, along with the profitability of Disney’s streaming business, has led to an upgrade of the stock by Seaport Research Partners. The analysts now rate Disney a buy with a price target of $108 a share. The progress Disney has made in making its streaming unit profitable and recent box office success are positive indicators for the stock.
The S & P 500 energy sector is on track to finish the third quarter as the only sector in the red, down more than 3%. While there have been some winners in the oil and gas group, independent exploration and production companies have been a disappointment. The energy exposure of Jim Cramer’s Charitable Trust is less than the S & P 500’s energy weighting, with a small position in Coterra Energy. Natural gas is starting to move, and Coterra shares are trading at value with a dividend yield, leading to consideration of adding to the position.
Looking ahead, earnings from Paychex and McCormick are expected before the open on Tuesday. Economic data such as the JOLTS report, which measures job openings, and the September ISM manufacturing index will also be watched closely. Subscribers of the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, following a waiting period before executing the transaction to ensure compliance with trading guidelines. It’s important to note that no specific outcome or profit is guaranteed, and no fiduciary obligation or duty is created by receiving information provided in connection with the Investing Club.
