Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks are holding onto gains to start the week. The only sector stuck in the red was energy as oil sold off. West Texas Intermediate crude futures fell more than 6% and had one of its worst days since 2022 after Israel did not target Iranian energy facilities in a strike over the weekend. The market may like lower oil prices, but it is still grappling with rising bond yields. The yield on the benchmark 10-year Treasury note is closing in on 4.3%. A reason why interest rates rose was the soft demand for $69 billion of 2-year notes and $70 billion of 5-year notes. Defensive woes: Meanwhile, defensive sectors like consumer staples and health care continue to struggle. Club holding Danaher is lower again — its sixth straight down day — after earnings last week. The quarter itself was better than expected , with a bioprocessing beat and the business on track for high-single-digit growth exiting the year. But investors turned on the stock after management was noncommittal about discussing 2025 figures and analysts lowered their estimates, causing the stock to suffer its worst weekly performance since 2020. This drop looks far too excessive since the bioprocessing recovery thesis did not change. AMD on deck: Several Wall Street research firms published their third-quarter expectations for Advanced Micro Devices ahead of its Tuesday evening report. Many expect the chipmaker to raise its 2024 AI chip sales outlook to more than $5 billion, up from its prior guidance of more than $4.5 billion. We would be surprised if CEO Lisa Su provided 2025 AI chip sales guidance. Raymond James also does not expect the company to talk 2025 numbers either, analysts said in a note Monday, but the current consensus is somewhere around $9 billion to $10 billion in AI chip sales. Outside of AI chips, we’ll be looking for color on personal computer trends and market-share gains in the non-AI chip server space, where AMD primarily competes with struggling Intel . AMD shares are up about 15% since the company reported second-quarter numbers , but they are still off about 15% from their July peak. CrowdStrike court fight : We think Delta Air Lines has a weak case in the lawsuit it filed Friday against Club name CrowdStrike because the cybersecurity provider’s CEO, George Kurtz, is working with every single customer to restore trust after the IT outage, and the company says Delta has been an outlier in this process. In fact, CrowdStrike claims that Delta refused assistance from both itself and Microsoft, according to a lawsuit filed Monday against the Atlanta-based airline. If the CrowdStrike-Delta spat causes a pullback in CrowdStrike share price, we would be buyers. We would have added to our position Friday and Monday if we were not restricted. Up next: Some of the notable companies reporting after the closing bell Monday include Ford Motor , chip software firm Cadence Design Systems , and North Face owner VF Corp . The reporting companies on our radar Tuesday morning include Club name Stanley Black & Decker , fintech players SoFi and PayPal , and McDonald’s . Pfizer , Royal Caribbean Cruises , glass maker Corning and electrical component maker Hubbell also report before the opening bell. For Stanley Black & Decker, its end market demand is subdued due to higher interest rates, but we expect to see more progress on the DeWalt owner’s cost structure and margin expansion program. These efficiency gains should strengthen earnings power once the next big home improvement cycle kicks in. For that, the housing industry is still waiting on lower mortgage rates. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
