The Homestretch is released by the CNBC Investing Club with Jim Cramer every weekday, providing an actionable afternoon update for the last hour of trading on Wall Street. The market is starting October and the fourth quarter on a lower note, similar to trends seen at the start of August and September. The current pullback is due to conflict in the Middle East, with Iran launching missiles into Israel causing a flight to safety. U.S. government bonds and the dollar are rallying, oil prices are spiking, and energy and defense stocks are rising. Coterra Energy was purchased as a hedge in case the events in the Middle East escalate and create a larger move in oil prices, along with the recent recovery in natural gas.
The S & P 500 tech sector is facing challenges on multiple fronts, with a flight-to-safety session leading to weakness in the sector as investors reduce risk. There are also company-specific headlines impacting tech stocks, such as Apple’s weakness due to analysts scrutinizing iPhone 16 lead times and its supply chain. Despite these issues, Jim Cramer emphasizes a long-term view on AI-infused devices leading to a robust iPhone upgrade cycle over time. PC-related stocks are being hit after Citigroup downgraded HP Inc and CDW Corp, citing a cautious view on a second-half recovery and the impact of artificial intelligence-enhanced PCs on sales. Despite the tech sector being down more than 2%, positions in chipmakers Nvidia, Broadcom, Advanced Micro Devices, and Best Buy remain unchanged.
Nike is set to report earnings after the closing bell, providing insights into what’s happening in China after recent economic stimulus measures. This will be Nike’s last earnings report before Elliott Hill replaces John Donahoe as president and CEO. Other companies reporting include fast-food fry supplier Lamb Weston, egg giant Cal-Maine Foods, and Conagra, which owns brands like Slim Jim and Hunt’s. ADP’s private-payrolls report is also anticipated ahead of the Labor Department’s jobs report on Friday. As a CNBC Investing Club subscriber, members receive trade alerts before Jim Cramer makes a trade, with a waiting period of 45 minutes before executing the trade alert on stocks in his charitable trust’s portfolio.
Subscribers are also informed that there is no fiduciary obligation or duty created by receiving information from the CNBC Investing Club, and no specific outcome or profit is guaranteed. The information provided is subject to the terms and conditions, privacy policy, and disclaimer of the club. The recent market trends, including the pullback based on the conflict in the Middle East, are highlighted, with a focus on how different sectors are performing. Despite the challenges faced by the tech sector, positions in certain companies remain unchanged based on a long-term perspective. Earnings reports from companies like Nike, Lamb Weston, and Cal-Maine Foods are anticipated, providing insights into various industries. As a subscriber, members receive trade alerts before Jim Cramer makes a move, with specific waiting periods in place before executing trades based on the information provided.
