Why we’ve raised cash into the market rally — plus, earnings insights on 2 of our stocks

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 check: Wall Street needs a late-day rally if it’s going to keep its winning streak alive. A positive session for the S & P 500 would mean it’s gone nine straight without a down day, something it hasn’t done in 20 years. What a run it’s been since Aug. 5, when volatility surged on recession fears and an unwind of a popular hedge fund trade sent the U.S. stock market tumbling. The recent rally pushed the S & P 500 to within a whisker of its all-time high, but we don’t want to be complacent. Discipline matters after a comeback like this, especially with the market overbought, according to the S & P Short Range Oscillator, and September — a historically weak month for the market — looming. This discipline is why we’ve been raising cash this week. On Monday, we sold Estee Lauder, which was surprisingly flat at the time of the sale despite a horrible fiscal 2025 outlook, and locked in a profit Tuesday in an emerging battleground stock like Morgan Stanley . After our afternoon trim of Abbott Labs on Tuesday, our cash position is roughly 9.4%, and we could see it get up to 10% in the coming days to protect gains. Portfolio read-throughs: Marvin Ellison, the CEO of home improvement retailer Lowe’s , on Tuesday offered comments with positive implications for Club holdings Apple and Stanley Black & Decker . For those wondering if the Apple Vision Pro is dead in the water, Ellison provided an update on Lowe’s use of the mixed-reality headset. “This past quarter, we piloted an in-store design experience for our customers in three test markets where with the help from a Lowe’s associate, customers could wear the Apple Vision Pro and use a Lowe’s style studio app to explore and customize hundreds of kitchen designs in 3D using product fixtures and appliances all available at Lowe’s,” he said. While the Vision Pro has seemingly had a sluggish launch, we think use cases like this exist in many industries, and we’re only now beginning to scratch the surface of where spatial computing will go in the future. On the U.S. housing market, Ellison said the concept of “lock-in,” where current owners don’t want to sell and lose their low mortgage rate, is keeping the supply of existing homes low. “Housing turnover is hovering near its lowest levels since the mid 1990s,” the CEO said. And, he added, that “aging housing stock means people will need to make repairs and improvements in their homes,” a positive indicator for Stanley Black & Decker because its tools are likely needed to get those projects done. Up Next: There are only a couple earnings after the bell Tuesday. The homebuilder Toll Brothers , the cosmetic company Coty , and the test and measurement company Keysight Technologies are all scheduled to report. Wednesday is a big retail day, with Club holding TJX Companies , Target , and Macy’s reporting earnings. Analog Devices reports, as well. (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.