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 stumble: The market struggled Wednesday following the release of the March consumer price index (CPI) report. The 10-year Treasury yield surged as high as 4.55%, from 4.35%, after the inflation proxy report was a touch hotter than expected. Large upward moves in rates tend to put the stock market in a tailspin. The report raises concerns that the Federal Reserve may be in no position to cut interest rates at its June meeting. With the S & P 500 working on its fifth down session out of the last eight, we are searching for stocks to buy into the weakness. “Always looking to buy something on a down day,” adds Jim Cramer. ” Abbott Lab s? We like it, but not down enough from our last buy. Bullpen name Nucor ? Not down enough. Would like to see it down 7 to 10 dollars.” What goes down when rates go up? When interest rates go up, the groups in the blast zone are real estate and utilities, stocks tied to housing, anything that needs to be bought with financing like cars or solar panels, and companies with weaker balance sheets because higher rates make it more expensive and challenging for them to refinance their debt. Even if the environment gets a little tougher because of higher rates, it doesn’t mean we want to abandon ship on quality companies that are improving themselves. As long as the economy is strong — and last Friday’s jobs report indicated it is — our investment approach has not changed because the timing of the first cut in rates may be delayed. That’s why we are looking for weakness to buy a stock like Stanley Black & Decker , which is tied to home remodeling projects. But maybe not just yet. “The shellacking in homebuilders draws me to Stanley Black & Decker…
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