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 are able to get this recent written feature to members as quickly as possible.) Markets rebound as Nvidia goes green: After a slow begin to the session , Nvidia shares climbed out of their early hole and traded higher on the day. One reason behind the positive reversal could an understanding that giant cloud providers and other major tech corporations are likely already lining as much as get their hands on Nvidia’s newest artificial intelligence hardware. “Amazon’s CEO, Andy Jassy, he said can be joyful to get as most of the chips he could get his hands on,” Jim Cramer said. But what Nvidia has achieved to advance AI is way more vital than simply cloud computing. It would have a positive impact on many real-world applications, just like the health-care industry. “Nvidia is all around the time it takes to do a drug trial. It’s going to shorten it dramatically,” Jim said. Over time, he added, these AI-fueled improvements in drug discovery could translate to “extra money for Danaher,” a Club holding within the life-sciences industry whose customers include pharmaceutical corporations. Within the immediate near term, keep in mind that Danaher “is within the sweet spot every time you see these $2 billion to $3 billion takeovers of biotechs,” Jim said. Indeed, we saw one other one in all those deals within the biotech space Tuesday. AstraZeneca agreed to purchase Fusion Pharmaceuticals for as much as $2.4 billion. One other announcement that got our attention was Nvidia bringing the its 3D applications platform Omniverse to Apple ‘s Vision Pro mixed reality headsets. “The industrial uses for the Vision Pro just jumped to the highest because [Nvidia CEO Jensen Huang] showed how you’d buy a automobile with it,” Jim said. “The simulation could also be higher than a test drive because you’ll be able to then ask for the automobile to your specs.” We call that synergy between two long-standing Club holdings which can be “own it, don’t trade it” stocks in Jim’s view. It’s only a matter of time before the market really starts to understand Nvidia’s push into software and services, like what the Omniverse provides. Catch more of Cramer’s exclusive with Huang on “Mad Money” on Tuesday and Wednesday nights. Morning Meeting follow up: A part of Tuesday’s Morning Meeting focused on the recent struggles at Starbucks and a litigation overhang impacting Abbott Laboratories . Since Jim couldn’t make the Morning Meeting, he offered his thoughts on the 2 storylines. Regarding Starbucks, he said, “People don’t desire to say sell it because perhaps that is what trough looks like.” Trough could also be viewed in just a few alternative ways. It could possibly be about “comps,” or same-store sales, that are going through a rough patch without delay attributable to headwinds in China, the Middle East, and the afternoon daypart within the U.S. It also could mean valuation, as many analysts have cited Starbucks’ low-cost price-to-earnings ratio versus history. On Abbott Labs, Jim said, “If Abbott’s stock goes back down buy it. This exposure to lawsuits is, sadly, business as usual. It is the numbers; [Johnson & Johnson] has 80,000 plaintiffs suing it. Abbott has such a small number it could quadruple, no quintuple, before we must always even factor it in.” As of Jan. 31, Abbott had 993 lawsuits pending in federal and state courts. GLP-1s: It’s hard to go a day without the increasingly popular drugs generally known as GLP-1s within the news. Oprah Winfrey hosted a TV special Monday night, discussing the health advantages she has enjoyed since taking these revolutionary medications to assist destigmatize weight-loss drugs. We’re all still attempting to determine exactly what changes in consumer tastes and habits these drugs will bring, but one area that increasingly looks in danger is in alcoholic beverages. Jim thinks the decline in Brown-Forman shares to a four-year low could also be explained by GLP-1 use. “The corporate says no way. But the reason is an easy one: Why pay up for higher end wine and spirits once they all taste the identical? That is the GLP-1 dilemma,” he said. Nevertheless, Cramer doesn’t think all alcoholic beverage corporations fall into this trap. “Beer doesn’t suffer from the GLP-1 dilemma since it is a social drink. And Constellation Brands’ price points are reasonable,” he added. Shares of Constellation Brands currently trade about $5 per share, or roughly 2%, off the Club holding’s all-time high reached in July. A peek at Wednesday : It should be a busy day with earnings within the morning from Chinese online retailer Pinduoduo and packaged food company General Mills , followed by Broadcom’s AI Infrastructure Invest Event, which is ready to kick off at 12 p.m. ET. Then, at 2 p.m. ET, we’ll get a policy announcement from the Federal Reserve’s Federal Open Market Committee followed a half-hour later by Chair Jerome Powell’s press conference. Although no rate of interest cut — or hike, for that matter — is predicted, the March meeting is notable since the Fed will release an update to their economic projection materials. This includes projections for gross domestic product, the unemployment rate, and PCE inflation, in addition to the so-called “dot plots,” which asses each FOMC participants view of appropriate monetary policy. (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.
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., arrives at an event in Taipei, Taiwan, on Thursday, Jan. 25, 2024.
Lam Yik Fei | Bloomberg | Getty Images
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 are able to get this recent written feature to members as quickly as possible.)
