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. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.) Stocks drift: Wall Street was mixed Tuesday afternoon as investors appear reluctant to act too boldly before the Federal Reserve’s favorite inflation gauge comes out Thursday. The Dow Jones Industrial Average was down the most out of the big three stock benchmarks – losing more than 100 points, or roughly 0.4%. The S & P 500 was roughly flat. The Nasdaq was bouncing. The Dow and S & P 500 also fell Monday after finishing at record closes Friday. The Nasdaq, as of Monday’s close, dropped five out of the past six sessions. On Thursday, the tech-heavy index surged nearly 3% and came within a whisper of the November 2021 record close of 16,057.44. Sector watch: Utilities were the best-performing sector Tuesday. Energy was the worst despite a 1.5% rise in oil prices on hopes of a Gaza ceasefire and OPEC production cuts. Materials , home to Club name Linde , were the third-best Tuesday. Shares of Linde took a breather but was still near all-time highs. The company announced a 9% quarterly dividend raise. Board fight: “Poor oversight by a complacent board.” That’s how former Disney CFO Jay Rasulo summed up the problems with Disney ‘s board. Activist investor Nelson Peltz is seeking board seats for himself and Rasulo, a move Jim Cramer said at Saturday’s Club annual meeting that he supports. In a CNBC interview Tuesday, Rasulo was asked whether Peltz is just a proxy for ousted Marvel Entertainment head Ike Perlmutter. Rasulo said Peltz’s Trian Partners has a $750 million Disney stake – far larger than any board member. The Trian-plus-Perlmutter stakes are worth nearly $3 billion. Disney responded to Peltz’s criticisms, going point by point on the Vote Disney website in a letter dated Monday . Clawing back: Palo Alto Networks kept rolling higher Tuesday, getting back more and more of its near-30% post-earnings decline last Wednesday. Palo Alto was the top Club performer Tuesday, one day after we bought the dip as we said we would last week when our portfolio restrictions lifted. Three of our struggling stocks — Estee Lauder , Foot Locker and Bausch Health — were having good days and a good month, for that matter. However, they still have work to do to get back to their 52-week highs. Earnings ahead: Tuesday evening Beyond Meat , Virgin Galactic and Rocket Lab are set to report. Wednesday brings numbers from Club names TJX Companies before the bell and Salesforce after the bell. For the T.J. Maxx and Marshalls owner TJX, Jeff Marks, director of portfolio analysis for the Club, said our focus will be on management’s description of the merchandise marketplace given the fact that many retailers have spent the past year trying to get lean. During Tuesday’s Club Morning Meeting , Jim called the third recent Salesforce price target increase a “red flag,” because the hikes were raising the earnings bar too high and setting up a situation where good numbers may not be good enough. (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. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.)
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