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.)
Powell speaks: Two days of testimony from Federal Reserve Chair Jerome Powell came and went without any fireworks. Jim Cramer believes his message was that rate cuts are coming, but only if we need them. “We love that. Push the cuts out if the economy doesn’t need them,” Jim said.
The stock market doesn’t seem to care that the first rate cut isn’t expected until June. The S&P 500 made a new all-time high in Thursday’s session, the latest in a series of records for the stock index this year.
Semis soar: There’s a jailbreak in semiconductor stocks of all kinds Thursday, regardless of their end markets. Jim said he does not like these kinds of moves. “But I am struck that the cellphone semis are very, very strong: Qualcomm and Skyworks are two good examples,” Jim said. “Broadcom has cellphone exposure, too.” Broadcom is a Club holding.
Some recent research on the chip stocks drew the ire of Jim, too.
“Nvidia is going to $1,000. Again, now analysts are playing leapfrog to be highest man, I don’t care for this,” Jim said, referring to Mizuho’s new price target on shares of Nvidia. The firm also boosted its price target on chip designer Arm Holdings, Advanced Micro Devices and Broadcom.
“I like when numbers [earnings estimates] go up,” Jim said.
Shrugging off the competition: Club name Eli Lilly rebounded from its early losses tied to rival Novo Nordisk’s strong early trial results for its next-generation weight-loss drug. It’s also good to see Club holding Palo Alto Networks rebound Thursday after sitting out the CrowdStrike-fueled rally in cybersecurity stocks Wednesday. “Lilly don’t sweat the program, same with Palo Alto — obesity and cybersecurity. There is room for more than one…
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