The CNBC Investing Club with Jim Cramer releases the Homestretch, an afternoon update for members just before the last hour of trading on Wall Street. On Monday, markets dipped, following a positive move last week that saw the S & P 500 reach a record high. The S & P 500 Short Range Oscillator reached overbought territory, prompting some sales in Monday’s session. Higher interest rates also contributed to the dip, with the yield on the 10-year Treasury note spiking 13 basis points to 4.32%, leading to weakness in rate-sensitive sectors and stocks like commercial real estate, utilities, and housing-related companies.
One of the sales made on Monday was in Disney, as the stock had experienced strong year-to-date performance, becoming the largest position in the portfolio. The sale comes ahead of Disney’s annual shareholder meeting, where the outcome of Nelson Peltz’s campaign for board seats will be revealed. Bank of America raised its price target on Disney, citing strong momentum across its business. Jim Cramer expressed confidence in the business but stated that the stock could go down if Peltz loses. In other news, Jim expressed concerns about consumer spending, citing companies like Starbucks, Nike, and Lululemon that have struggled this year. He also mentioned the purchase of Best Buy shares, anticipating an inflection in same-store sales due to a new personal computer buying cycle.
As the first quarter of the year has come to a close, earnings reports are still relatively quiet. PVH Corp and Paychex are among the companies reporting earnings, with the global apparel company reporting after the close on Monday and the payroll and HR firm reporting on Tuesday morning. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade. Jim waits a designated time period after sending a trade alert before executing the trade to ensure transparency and fairness. The information provided through the Investing Club is subject to terms and conditions, privacy policy, and disclaimer, and does not create a fiduciary obligation or guarantee specific outcomes or profits.
Overall, the market experienced a dip on Monday, following a record high last week. Factors contributing to the decline included overbought territory on the S & P 500 Short Range Oscillator and higher interest rates, which impacted rate-sensitive sectors and stocks. Sales were made in Disney and Alphabet to rebalance the portfolio, with Disney experiencing strong performance year-to-date. Concerns were raised about consumer spending and the struggles of companies like Starbucks, Nike, and Lululemon. Best Buy shares were purchased in anticipation of an increase in same-store sales due to a new personal computer buying cycle. Earnings reports are still relatively quiet, with companies like PVH Corp and Paychex reporting in the upcoming days. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before trades are executed in the charitable trust’s portfolio, ensuring transparency and fairness in trading practices.
