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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. Markets: Stocks are struggling to hold onto gains Tuesday with the market well off its highest levels of the session. Deeply oversold conditions combined with some optimism that the Trump administration is open to making trade deals lifted stocks early in the session. On Tuesday morning on CNBC, Treasury Secretary Scott Bessent said countries are calling the White House to make deals, and the administration is building a list of who to prioritize. “I think you are going to see some very large countries with large trade deficits come forward very quickly” he said. “If they come to the table with solid proposals, I think we can end up with some good deals.” President Donald Trump confirmed on Truth Social that he is talking with other countries to make deals and referenced a positive call he had with South Korea. But what happens with China is a toss up — and we remain very mindful of that uncertainty. In his social media post, Trump also said that China “also wants to make a deal badly,” but that sounds very different from what the country said late Monday, vowing that it will ” fight to the end ” against Trump’s latest tariff threats. The additional 50% tariffs on China — which would bring the rate to a whopping 104% — are scheduled to go into effect midnight Wednesday. Near its highs of Tuesday’s session, the S & P 500 traded back to the levels it briefly touched Monday in reaction to a fake headline about a potential pause in tariffs. Although it was based on erroneous information, it showed what the market could do with some tariff relief. After a 17% drawdown in the S & P 500, there’s more talk about what’s going wrong in the market and not enough about what could go right. Bouncing back: When the market starts to bounce back after a major sell-off, it’s hardly a surprise to see some of the hardest-hit stocks lead the way out. That dynamic is certainly played out for most of Tuesday’s session, as Broadcom and Nvidia made big moves higher — though they’ve come off the boil in afternoon trading. To flesh this idea out further, we looked the portfolio to see which stocks were down the most from their respective highs of the year. Here’s the 10 stocks with the biggest drawdowns from their 2025 high through Monday’s close. Broadcom (-37%) Nvidia (-35%) Salesforce (-32%) Eaton Corp. (-32%) DuPont (-31%) Starbucks (-31%) Goldman Sachs (-31%) Meta (-30%) CrowdStrike (-29%) Danaher (-28%) One aspect to this bounce-back dynamic is that, when a dramatic sell-off happens, some stocks can overshoot to the downside because investors and traders are selling first and asking questions later. And so as people start to look to put money into the market, they may start picking at where the carnage is – rather than adding to a name that has proved relatively resilient, such as Bristol Myers Squibb . On our list above, in addition to Broadcom and Nvidia, we’re also seeing solid moves Tuesday in the likes of CrowdStrike and to a lesser extent Salesforce and Starbucks . One reason why Broadcom has likely been able to hold onto more robust gains, even as the market lost steam, is that the chipmaker announced a $10 billion stock buyback program, and the authorization only lasts until the end of the year, meaning the company is acting with some urgency. That’s a bullish sign from management about how it views the stock’s recent pullback. A clear exception that list Tuesday is DuPont, which is down more than 2%. The company’s exposure to China – where it is facing a questionable investigation from regulators over a product line that represented less than 1% of the company’s 2024 sales– is likely keeping a lid on the stock for now. Danaher, which was slightly positive in the morning before turning lower, also has a big business in China. The main takeaway here: It’s too early to know the sustainability of Tuesday’s rebounds, but this exercise is a reminder of what tends to snap back the hardest on the slightest bit of good news. Up next: On the earnings calendar we’ll hear from egg producer Cal-Maine Foods after the closing bell. Delta Air Lines reports before the opening bell Wednesday, and since the company already preannounced results, we’re more interested in hearing what management has to say about forward bookings, especially in light of the uncertain macro environment. On the data side, there is weekly mortgage applications and Wholesales Inventories. (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.
