Every weekday the CNBC Investing Club with Jim Cramer releases the Homestretch audio feature in time for the last hour of trading on Wall Street. Here’s today’s edition. Market moves: Wall Street rebounded from Wednesday’s declines that started with a sell-the-news reaction to tech earnings and accelerated when Federal Reserve Chairman Jerome Powell poured cold water on the idea of a March interest rate cut. What was helping stocks Thursday was a rally in bond prices, which in turn pushed yields lower. We are, however, getting to a point where the market is overbought, which is typically a signal to sell. Jim Cramer said Thursday that investors can pick up stocks that are “oversold within an overbought market.” The Club is sitting on a pretty big cash position. Earnings, then jobs: The bounce back in tech stocks Thursday puts even more pressure on three of our Super Six names to deliver on earnings. Amazon , Apple , and Meta Platforms are set to report their quarters after the closing bell. How they do will set the tone for the market Friday morning, which also brings the government’s January employment report. Ultimately, a solid jobs report is better for the economy and good for stocks in the long run. However, really strong numbers might be further evidence that the Fed can remain on hold, which could hurt stocks in the near term. Winners: Eaton stock was higher on a strong quarter and bullish guidance. Foot Locker was up Thursday, one day after falling on a weak profit forecast from Adidas. Wynn shares were higher after January Macao numbers came in better than expected. Constellation Brands was up after competitor Diageo snapped back. GE Healthcare was higher, too. We trimmed some shares Wednesday as a hedge against weak orders in China. Laggards: Honeywell fell Thursday, and we used the pullback to add to our position. Stanley Black & Decker stock was down slightly after a conservative 2024 outlook . Jim said earlier that shares were at a good level to buy. Wells Fargo dropped as investors worried about the banks, especially ones with a lot of real estate exposure. Coterra Energy was down as oil dipped early on what appears to be a false report of a ceasefire in the Israel-Hamas war. (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.
Jim Cramer explains how investors can pick stocks in an overbought market
Feb 2, 2024
