CNBC Investing Club with Jim Cramer releases the Homestretch every weekday to provide an actionable afternoon update for the last hour of trading on Wall Street. This week, the S & P 500 has been rallying for the fifth consecutive session, up nearly 4% and almost entirely erasing last week’s sell-off. Tech stocks, specifically semiconductor companies like Nvidia, Broadcom, and Advanced Micro Devices, have seen double-digit percent gains this week, with all three chipmakers being Club holdings. The tech sector in the S & P 500 has risen more than 7% week to date, closely followed by consumer discretionary, which is up just over 6%, possibly due to investors’ optimism about the Federal Reserve’s upcoming rate cuts boosting consumer spending. However, energy was the only sector in the red this week as U.S. oil futures struggled, and financials were underperformers, up approximately 0.6% after a downbeat update on interest income from JPMorgan’s COO.
An analyst call from Citi recommended buying Eli Lilly stock, resuming coverage with a price target of $1,060 a share. Although the stock is trading lower on Friday, Lilly shares had outperformed after announcing plans to invest $1.8 billion in manufacturing across two facilities in Ireland. The investment will increase production of biologic active ingredients, including Kisunla, Lilly’s recently approved treatment for early symptomatic Alzheimer’s disease, as well as expanding a facility for GLP-1 diabetes and obesity treatments. This aggressive expansion in manufacturing creates a competitive edge for Lilly that smaller competitors cannot match, with the company committing over $20 billion since 2020 to build, expand, and acquire facilities in the U.S. and Europe.
The upcoming big event is the Federal Reserve’s two-day policy meeting next week, expected to result in the first rate cut since 2020. This meeting is significant as the FOMC will also update their economic projections for 2024 to 2026, including the dot plots showing central bankers’ expectations of future rates. While the value of the dot plots can be debated, they provide insight into the number of interest rate cuts expected by members by year-end and moving into 2025. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before he makes a trade, with a waiting period of 45 minutes or 72 hours after discussing a stock on CNBC TV before executing the trade. These actions are subject to terms, conditions, privacy policy, and disclaimer, and no specific outcome or profit is guaranteed.
In conclusion, the Homestretch released by CNBC Investing Club with Jim Cramer provides timely updates for the last hour of trading on Wall Street. This week has seen a strong rally in the S & P 500, with tech stocks leading the way, particularly semiconductor companies like Nvidia, Broadcom, and Advanced Micro Devices. The Fed’s upcoming rate cut and economic projections are eagerly anticipated, with the potential for market-moving decisions. Analyst calls on stocks like Eli Lilly provide additional insights for investors to consider in their decision-making process. The CNBC Investing Club offers subscribers trade alerts before Jim Cramer makes a move, ensuring transparency and opportunity for members.
