Post Views: 7
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. Market update: This week’s volatility on Wall Street, marked by tariff confusion, continued Friday, with the S & P 500 reversing higher after slumping more than 1% earlier in the session. The Dow and Nasdaq both flipped from negative to positive in afternoon trading. Friday’s bottom came after the tone of Federal Reserve Chairman Jerome Powell’s afternoon remarks eased the market’s anxieties about the economy, which helped lift stocks. Despite what looks like a higher session to finish Friday, the Dow, S & P 500, and Nasdaq were all tracking lower for the week. The tech-heavy Nasdaq looks like it will remain in correction territory. This week the losses piled up and pushed the tech-heavy index down more than 10% from its record-high close from back on Dec. 16. Rating upgrades: Due to this week’s market selloff, we are making a handful of rating changes in the portfolio. We are upgrading our ratings on Broadcom , Costco, and Wells Fargo to 1s. A stock rated “1” means we’d buy it right here. For Broadcom, we liked the quarter and the potential addition of two more custom chip partners (they could have 7 in total) adds conviction to our thesis that the company’s AI story has multiple years of runway ahead. Simply put, the stock should be up more after this great quarter. The stock down about 25% from its December high of $250 is a good level to pick some up. Costco shares are getting crushed despite reporting solid results and strong February sales. Our general rule of thumb is that a 10% pullback in a high-quality and profitable company with a strong track record of growing earnings in both a good and soft economy is when you have to get opportunistic. The stock’s lofty valuation is a hurdle, but its never cheap. Like other banks, Wells Fargo shares have been slammed the past couple of weeks and have given up their year-to-date gain, despite the progress CEO Charlie Scharf has made in boosting its fee-based businesses, keeping expenses in check, and improving risks and controls. The bank also gave one of the best 2025 outlooks of the bunch when it guided upside to net interest income and lower-than-expected operating expense. The potential removal of its asset cap represents a catalyst event . One more idea: We would be buyers of Texas Roadhouse on this recent weakness if we were not restricted. We’ve wanted to add to our position the next time it fell a few dollars below our average cost basis, and its roughly 5% pullback over the past two days has gotten us there. Texas Roadhouse’s value proposition will shine once again as the weather improves and restaurant spending recovers from its February lows. Next week: No companies in the portfolio are scheduled to report. Some big earning reports to take a look at will be Oracle , Dick’s Sporting Goods , Viking Holdings , Adobe , and Ulta Beauty . Inflation will be a hot topic with the release of the February consumer price index (CPI) and producer price index (PPI) reports. We’ll also see the Federal Reserve Bank of New York’s one-year inflation expectations, NFIB small business optimism, the job openings and labor turnover survey (JOLTS), and the University of Michigan’s March sentiment and inflation expectations. (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.
Broadcom CEO Hock Tan.
Lucas Jackson | Reuters
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.
