Each week, Jim Cramer’s CNBC Investing Club releases a Homestretch audio feature to coincide with the last hour of trading on Wall Street. Here is today’s edition. Market Action: Wall Street rebounded from Wednesday’s decline. The decline began with selling news on tech company earnings and accelerated after Federal Reserve Chairman Jerome Powell poured cold water on the idea of cutting interest rates in March. Stocks were supported on Thursday by higher bond prices, which pushed yields lower. However, the market is reaching an overbought point, which usually signals a sell. Jim Cramer said Thursday that investors can pick up stocks that are “oversold in an overbought market.” The club has a fairly large cash position. Earnings, and jobs: Thursday’s rally in tech stocks puts even more pressure on his three of the Super Six companies to deliver profits. Amazon, Apple, and Meta Platforms are scheduled to report their quarterly reports after the closing bell. How they perform will determine the tone of the market on Friday morning, when the government’s January jobs report is also released. After all, strong jobs numbers are good for the economy and good for stock prices over the long term. But a really strong number could provide further evidence that the Fed can keep rates on hold, which could hurt stock prices in the short term. Winner: Eaton stock rises after strong quarter and bullish guidance. Foot Locker rose on Thursday, a day after falling on Adidas’ weak profit forecast. Wynn shares rose after January’s Macau data came in better than expected. Constellation Brands rose after rival Diageo rallied sharply. GE Healthcare also rose in price. The company sold some shares on Wednesday as a hedge against weak orders in China. Laggards: Honeywell fell on Thursday and we took advantage of the pullback to add to our position. Stanley Black & Decker stock fell slightly after the company gave a conservative outlook for 2024. Jim has previously said the stock is at a buy price. Wells Fargo fell as investors worried about banks, especially those with heavy exposure to real estate. Cotera Energy fell as crude oil fell early on what appeared to be a false report of an Israeli-Hamas war ceasefire. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in a charitable trust’s portfolio. If Jim talks about a stock on his CNBC TV, he will wait 72 hours before executing a trade after issuing a trade alert. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
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