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. (We’re now not recording the audio, so we will get this latest written feature to members as quickly as possible.) Market talk : The S & P 500 and Nasdaq jumped to latest intraday highs Wednesday, extending the gains from the prior session’s late-day rally. The truth is, the S & P 500 broke above 5,300 for the primary time ever. The Dow , meanwhile, was a couple of half percentage point away from its all-time high. The catalyst in Wednesday’s session was a cooler-than-expected April consumer price index , which caused a rally in Treasury prices and a decline in yields (per their inverse relationship). In consequence, the market odds for multiple Federal Reserve rate of interest cuts this 12 months increased. A weak retail sales report for April , also out Wednesday, was seen as a “bad news is nice news situation” as cooling demand for goods could help ease inflation. The one thing we’re staying guarded about on this rally is how overbought the stock market has develop into. You may have to return to last December to search out a time when the S & P 500 Short Range Oscillator was this overbought. To be fair, it only took a shallow decline back then to work off that overbought condition — the S & P 500 fell about 2% from Dec. 28, 2023 to Jan. 4. Nevertheless, the market needed just a few weeks to digest the runup at the tip of 2023 before it powered higher again. Recent high : We got a probability to atone for Danaher ‘s bullish presentation on the Bank of America Healthcare conference on Tuesday. We thought management’s conversation was consistent with what we heard last month when the life sciences and medical diagnostics firm delivered beats across its three essential businesses. We took it as an indication that the long-awaited turnaround within the biotech industry was finally here. On the conference, Danaher continued to indicate that the bioprocessing inventory destock can be behind them by the second quarter, driven by the normalization of inventory levels and ordering patterns from large customers. The corporate prudently continued to forecast low activity in China. One point from the conference that we found particularly interesting: If drug prices come down because of this of the Inflation Reduction Act, Danaher could see a tailwind on the idea that volumes and consumption of those drugs to patients would increase. Danaher’s business is especially consumables, meaning it’s volume-driven. Danaher shares rose greater than 1% on Wednesday, adding to the three% gains from the day before. The move puts the stock at a latest 52-week high, though still about $30 per share below its Covid pandemic record. The stock’s strong performance over the past 12 months is example of how it may possibly repay to follow an investment in a high-quality company as it really works through temporary inventory challenges. The stock price in these cases will likely bottom long before its business cycle does. Cramer quick takes “It is likely to be a giant deal for unemployment claims that Red Lobster closed about 50 restaurants abruptly. That is plenty of employees,” Jim Cramer said. “Disney doesn’t deserve this decline because it is becoming a really low cost stock but people do not believe that Disney is serious in regards to the firings now. No Peltz.” “Data centers are natural gas hoggers. I feel that there are going to be plenty of nat gas plants built to fulfill the ability demand.” Up next : Cisco Systems reports after Wednesday’s closing bell, and we’re involved in hearing what the networking equipment company has to say about its Splunk acquisition. Thursday morning, we’ll hear from Walmart , Deere , and a few Chinese corporations in Baidu and JD.com . (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’ll 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 a couple of 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. (We’re now not recording the audio, so we will get this latest written feature to members as quickly as possible.)
