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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 pulling back for the second session. The lack of trade deals seems to be weighing on the markets — or, at least, slowing down some of the upward momentum after a big run. We also know the market entered this week significantly overbought, according to the S & P Short Range Oscillator. When this happens, the market is historically prone to a pullback or some consolidation. Meanwhile, interest rates dipped, and the yield on the 10-year Treasury note moved lower in reaction to a strong government auction of $42 billion worth of 10-year notes. Rates could be volatile on Wednesday, with Federal Reserve Chair Jerome Powell set to take the podium at 2:30 p.m. ET after the central bank’s May policy meeting announcement. The policy committee is largely expected to keep interest rates unchanged, but a debate is brewing on what the Fed will do in the next few months. Sector dynamics : Not much is working Tuesday. Utilities is the best-performing sector in the S & P 500. Most names were up in the session, but the sector is seeing an outsized moved thanks to a double-digit percentage gain in Constellation Energy in reaction to earnings and the expectation that it may soon announce a long-term nuclear power deal. The energy sector is slightly positive thanks to a rebound in oil prices. But Coterra Energy is not doing the sector — or our portfolio — any favors. Shares are off about 10% in reaction to some operational issues, which we addressed earlier in our earnings story. Health care is leading to the downside. Vertex Pharmaceuticals is the worst-performing stock in the group after sales of its pain medication Journavx missed expectations, but nearly every big pharma company and biotech were under pressure due to tariff and drug pricing-related uncertainty following a story from British newspaper The Times. It’s unclear if companies who have recently committed to investing in the U.S. will find relief. For example, Club name Bristol Myers Squibb was the latest company to announce a significant investment to the U.S., committing to spending $40 billion over the next five years. There also seems to be some volatility — especially in vaccine related stocks like Moderna and Pfizer — tied to Vinay Prasad’s appointment to director of the FDA’s Center for Biologics Evaluation and Research. Vote of confidence: Veteran restaurant operator Ron Shaich, the former two-time CEO of Panera and the current chair of Cava , offered some words of support for Starbucks CEO Brian Niccol and his turnaround efforts at the coffee chain. Shaich’s comments, which came Tuesday in an interview on CNBC, caught our attention given his success in the business, particularly his second stint at Panera when he helped modernize the company’s stores. “I know Brian. I know [former Starbucks CEO Howard Schultz],” said Shaich, CEO of Act III Holdings, an investment firm that has a majority stake in Tatte Bakery & Cafe, a smaller chain on the East Coast. “I think the world of what Brian is doing. He’s doing the right thing, which is returning Starbucks to a point of competitive advantage, a point of differentiation. The world does not need another restaurant, another coffee bar that is an automated beverage machine. It needs something that touches people. And in a world in which technology is prevalent, humanity is essential. … That’s what Brian is trying to bring back to Starbucks.” As Starbucks’ earnings report last week confirmed, fixing Starbucks cannot happen overnight. But still, Niccol’s strategy is the right one — and Shaich agrees. Up next: AI spending trends will be in focus after the closing bell on Tuesday when Arista Networks and Advanced Micro Devices report earnings. Other expected earning announcements are Wynn Resorts , Electronic Arts , Devon Energy , Astera Labs , Chemours , International Flavors and Fragrances , and Gen Digital . Beyond that, Club name Disney reports before the opening bell on Wednesday. The company reported much better-than-expected first-quarter results back in February, but did not pass through the beat to the full year outlook. That decision looks prudent given the recent macro uncertainty. We’ll be listening to what the company says about forward booking trends in its experience (theme parks and cruise line) business. Other companies scheduled to report are Novo Nordisk , Uber , Cencora , Emerson Electric , Johnson Controls , Barrick Gold , and Rockwell Automation . For Novo, in particular, we’ll be listening to see what executives have to say about the CVS formulary contract for Wegovy, which pressured shares of Club name Eli Lilly last week. (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. 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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.
