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. Stocks climb back: The bounceback rally on Tuesday accelerated in afternoon trading, with the S & P 500 and tech-heavy Nasdaq climbing around 2%. The Dow Jones Industrial Average , meanwhile, added nearly 600 points, or 1.5%. All three major U.S. equity indexes remain in negative territory for the week, though, after Monday’s steep losses during the global market sell-off. The S & P, Nasdaq and Dow also are on pace to snap three-session losing streaks Tuesday. While it’s nice to see a reprieve from the selling, we’re mindful that declaring a bottom is quite difficult in this environment . Instead of worrying about timing the bottom, our approach has been to look high-quality companies getting unfairly punished in the broader wreckage while exiting losers to help fund those purchases. Within the S & P 500, the top-performing sectors Tuesday are real estate and information technology, which were both among the hardest-hit groups in Monday’s carnage. Real estate is a sector that benefits from lower interest rates. The tech sector has been pummeled since roughly mid-July, and investors are stepping in to buy the dips in some beaten-up names including Club holding Nvidia and Meta Platforms. If the gains hold, Tuesday will be just the fourth positive day for tech since the July 15 close. Breaking through: The S & P 500 may be down about 1% the past two days, but that doesn’t mean every stock is down. Factoring in Tuesday’s session, many stocks —including several in the portfolio – are breaking free from the volatility with gains so far this week. Six stocks in the portfolio hold this distinction. They are Broadcom , Meta Platforms , Costco , Disney (more on this name in a second), Eaton and Dover . Earlier Tuesday, we bought shares of Eaton along with Advanced Micro Devices , which is one of the few Club stocks in the red in the session. Dover was among the stocks we bought into Monday’s sell-off. Disney rises: Disney shares added to their gains after the company announced plans to increase the annual fees for its subscription services . It also is adding new programming to Disney+ beginning in September, such as ABC News Live. Higher subscription fees are a key development for Disney’s streaming business, which on Wednesday morning is expected to report a small operating loss of $135 million in the quarter. While Disney’s DTC is on track to become profitable soon, management’s ambitions don’t end there. A few earnings calls ago, CFO Hugh Johnston said the plan is for streaming to achieve double-digit margins “with a sense or urgency,” although it is still unclear what that urgency means. CEO Bob Iger also has previously said the company would “love” to have margins like Netflix. In 2023, the streaming giant’s operating margins stood at 20.6%. Earlier this year, when we examined ways that Disney could work toward Netflix’s level , we noted additional price hikes were a lever the company could pull. Now it is, and it’s no wonder investors are cheering the news. Up next: Disney headlines Wednesday’s batch of earnings. In addition to discussion around streaming profitability, executives’ commentary around demand at its theme parks takes on extra importance given investor concerns about the U.S. economy. Other notable reports Wednesday include CVS Health, Wegovy maker Novo Nordisk and Emerson Electric. The economic data calendar is light ahead of Thursday’s initial jobless claims report. (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.
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