Every weekday, Jim Cramer’s CNBC Investment Club releases an actionable afternoon update called Homestretch, just in time for the hour before Wall Street closes. (We’ve finished recording the audio so we can get this new article to you as soon as possible.) Fed Blocks Stocks: Markets sank further into negative territory Wednesday afternoon after the minutes of the Federal Reserve’s most recent meeting raised inflation concerns. Note, however, that the Fed minutes are from a meeting held April 30-May 1 and therefore do not take into account the weaker-than-expected April Consumer Price Index, released on May 15. One stock that stood out in the Club on Wednesday was off-price retailer TJX, owner of TJ Maxx, Marshalls and HomeGoods, which reported strong quarterly results. See our earnings analysis and reasons for the Club’s price target increase. The waiting game: Volatility could shift after Wednesday’s closing bell if investors react to Nvidia’s fiscal first-quarter 2025 earnings report and outlook. Nvidia, the club name, beat its most impressive quarterly revenue estimate to date, earning about $11 billion versus $7.15 billion expected. The news sent Nvidia shares soaring 24% in one session, igniting an artificial intelligence/data center construction theme that shows no signs of slowing to date. Sector dynamics: Healthcare was the only sector to hold onto a modest gain, driven by Moderna’s stock price surge. Technology was down. However, solar power stocks such as First Solar and Enphase Energy, both in the information technology sector, surged. Nextracker, a smaller company not included in the S&P 500, also surged on Wednesday. Following last week’s strong performance, we are monitoring Nextracker as part of our bullpen watchlist. We are seeing declines in some commodities, with energy and materials dropping. Copper is pulling back after hitting an all-time high on Tuesday. Crude oil is also dropping for the third straight trading day. Quiet comeback: We’ve been keeping an eye on Starbucks and the company’s mysterious recovery over the past three weeks. After plummeting nearly 16% in early May following dismal quarterly earnings and a big cut in full-year guidance, the coffee giant’s shares have quietly recouped most of their losses without any real news. If the stock closes above $80.50 per share, it will have risen about 7% over the past four trading days. The recent movement in club stocks makes us wonder if there are big buyers lurking. Up next: NVIDIA, obviously the main event of the week, will report earnings after the closing bell on Wednesday. Other companies include cloud names Snowflake, elf beauty, Vans, North Face, Timberland owner VF Corp, and automation software maker Synopsys. Before Thursday’s open, Ralph Lauren, medical device maker Medtronic, and BJ’s Wholesale Club all reported. (For a complete list of Jim Cramer’s Charitable Trust stocks, go here.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes any trades. Jim waits 45 minutes after sending you a trade alert before buying or selling shares in the Charitable Trust’s portfolio. If Jim talks about a stock on CNBC television, Jim waits 72 hours after issuing the trade alert before executing the trade. The above Investment Club information is subject to our Terms of Use and Privacy Policy and Disclaimer. No fiduciary duty or liability exists or arises as a result of the receipt of any information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
Every weekday, Jim Cramer’s CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street. (In order to get this new written feature to our members as soon as possible, audio recordings will no longer be made.)
