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 muted on Wednesday but clinging to modest gains in afternoon trading. If the S & P 500 finishes in positive territory, it would market another record close. Tuesday’s rally, which was driven by a benign consumer price index report, was all about the comeback in cyclicals and the financials. What’s different in Wednesday’s session is that the gains are being driven by the unloved, down-and-out health-care sector thanks to bounce backs in UnitedHealth Group , Eli Lilly and many others. It’s been a brutal year for the sector, which is down more than 3.5% in 2025 even when including Wednesday’s more than 1% advance. The gains in Eli Lilly on Wednesday are notable because it follows a string of insider buy transactions filed late Tuesday. The level of confidence by the executive team — including CEO David Ricks and Chief Scientific Officer Dan Skovronsky — to buy stock after last week’s nasty selloff on disappointing trial data gave us the confidence to upgrade our rating back to a buy-equivalent 1 rating. Our trading restrictions, which prohibit us from buying or selling stocks that Jim Cramer mentions on TV for the next 72 hours, kept us from repurchasing some of Lilly shares we sold much higher back in late July. AI infrastructure : One group pulling back on Wednesday is the AI trade. Chip stocks such as Club names Nvidia and Broadcom — as well as data center infrastructure and power companies like Eaton and GE Vernova — are moving lower. The group has had a great run this year, so there’s nothing wrong with the periodic pullback. But the group may also be reacting to the earnings outlook by CoreWeave, the newly public company that builds data centers using Nvidia’s hardware then rents out AI-level computing power to its customers, including some of the largest players in tech. Unlike all the major hyperscalers this earnings season, CoreWeave left its full-year capital expenditure range unchanged at $20 billion to $23 billion. The thing about the CoreWeave outlook is that it implies a significant fourth-quarter ramp, meaning capital expenditures in its final quarter of the year are expected to substantially increase from the pace seen over the first three. This year-end weighted outlook is driven primarily by power availability — the company’s main constraint — rather than demand, which still exceeds supply. The unchanged capex outlook shouldn’t be seen as a sign of flattening AI demand; it’s a direct result of capacity limitations. Up next: Cisco Systems is the big earnings report after the closing bell on Wednesday, and we expect to see that momentum in the Club holding’s AI infrastructure orders continued. Deere , Advance Auto Parts and Birkenstock report before the opening bell on Thursday. On the data side, we will see the July producer price index and weekly jobless claims. (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.
