The Homestretch update from the CNBC Investing Club with Jim Cramer provides investors with actionable information for the last hour of trading on Wall Street. In a recent update, the focus was on the market’s relative quietness following a volatile but positive September and strong third quarter. Federal Reserve Chair Jerome Powell indicated that additional rate cuts may be ahead if the economy evolves as expected, but emphasized that the Fed is not on a preset course. This uncertainty caused the S & P 500 to trade at its lows for the day, as market probabilities for the Fed’s next meeting shifted.
Shares of Disney have quietly been performing well in September, up about 6% despite concerns about the theme park’s slowdown. The stock rallied after Seaport Research Partners upgraded Disney to a buy, citing an improving macroeconomic outlook and profitability in the streaming business. While the market valuation of Disney is heavily tied to its experiences business, the progress in making the streaming unit profitable and recent box office success are positive indicators for the stock’s future performance.
The energy sector has been struggling, with the S & P 500 energy sector finishing the third quarter as the only sector in the red. Despite this, there have been some winners in the oil and gas group, with independent exploration-and-production companies disappointing. Coterra Energy, a disciplined driller that balances oil and natural gas production, has been a small energy position in Jim Cramer’s Charitable Trust. Natural gas is starting to make gains, leading to potential value in Coterra shares.
Upcoming earnings reports from Paychex and McCormick, as well as economic data releases such as the JOLTS report and the ISM manufacturing index will impact trading in the near future. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before any trades are made, with Jim waiting 45 minutes after sending a trade alert before executing it. There is no fiduciary obligation or duty created by receiving information from the Investing Club, and no specific outcome or profit is guaranteed. Investors should review the terms and conditions, privacy policy, and disclaimer before making any investment decisions.
