The Homestretch, released by the CNBC Investing Club with Jim Cramer every weekday, provides an actionable afternoon update just in time for the last hour of trading on Wall Street. In a recent update, it was noted that Wall Street was able to hold onto strong gains despite the Federal Reserve signaling just one interest rate cut this year. The Fed left rates unchanged following its two-day June meeting, as expected. The S&P 500 and Nasdaq hit new all-time highs, driven by a cooler-than-expected consumer price index for May. However, excluding shelter, which remained high, there was a month-over-month decline of 0.2%.
Fed Chairman Jerome Powell acknowledged progress on inflation but stated that it remains too high. Powell stressed that rate decisions are data-dependent and not preplanned. Notable laggards in the Dow on Wednesday included Nike, Salesforce, Chevron, Boeing, Verizon, Procter & Gamble, and Johnson & Johnson. The Dow barely budged, with the S&P 500 and Nasdaq outperforming it due to their market-cap-weighted nature. Tech, real estate, and economically sensitive stocks tend to outperform when the market anticipates rate cuts, while more defensive areas like staples, utilities, and healthcare take a back seat.
Broadcom’s upcoming earnings report was highlighted as a key event, providing insights into the investment in artificial intelligence technology. Oracle’s positive quarter and commentary on cloud spending painted a robust picture, leading to a surge in the sector. Johnson & Johnson was also mentioned as potentially gaining traction with its talc settlement, presenting a risky but potentially rewarding opportunity for investors. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, with specific waiting periods after alerts before executing any transactions to ensure transparency and compliance with regulations.
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.
