The CNBC Investing Club releases an actionable afternoon update called the Homestretch, just in time for the last hour of trading on Wall Street. The S & P 500 spent Friday’s session mostly unchanged as it aimed for a fourth record close of the week. The August inflation gauge was considered tame, and reports throughout the week indicated a healthy economy, reassuring investors that central bankers did not cut interest rates out of fear of stalling growth. Despite a down session on Wednesday, the S & P 500 was on track for its sixth weekly gain in the past seven. The Short Range Oscillator remained overbought for eight sessions, prompting the club to consider trimming in overbought markets and making small sales in companies like Meta Platforms and Alphabet.
As September comes to a close, the S & P 500 is expected to have a solid monthly gain, potentially marking the first positive September in five years. The third quarter on Wall Street is also ending, with the S & P 500 possibly finishing in the green for the fourth consecutive quarter, a streak not seen since 2021. For the month, consumer discretionary, utilities, and materials were the best-performing sectors, while utilities, real estate, and industrials led in performance for the quarter. Honeywell announced an annual dividend increase of 4.6% to $4.52 per share, adding to shareholder returns. Despite Honeywell’s challenges, Jim Cramer sees value in its individual businesses like aerospace, and the club will hold management accountable to act on the reshuffling timeline laid out by the CEO.
The big economic number to watch next week will be Friday’s job report for September, which could provide insight into future interest rate cuts by the Fed. After recently cutting rates, the Fed is expected to further reduce rates by 75 basis points before the end of the year. The only club name reporting earnings in the upcoming week is Constellation Brands on Thursday. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, adhering to specific waiting periods after issuing a trade alert and discussing a stock on CNBC TV. It is important to note that there is no guaranteed outcome or profit, and no fiduciary obligation exists solely based on information provided by the Investing Club.
Overall, the market remains relatively stable, with the S & P 500 showing signs of continued growth and positive gains. Investors are reassured by a healthy economy and cautious optimism about central banker decisions. The club continues to monitor market conditions and make strategic adjustments as needed, such as trimming in overbought markets and holding companies accountable for planned actions. With upcoming economic data and earnings reports, there are opportunities for further insight into market trends and potential growth opportunities. Subscribers to the CNBC Investing Club with Jim Cramer receive timely updates and trade alerts, enhancing their ability to make informed investment decisions in the ever-changing market environment.
