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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. Markets: Stocks were mostly lower to start the week. Initially, the market got a boost from the big drop in Treasury yields, but the bond price rally, which pushes yields down, cooled off as the day progressed. The 10-year Treasury yield was still down on the session but back above 4.30%. We’re wondering if the amount of supply hitting the Treasury market is becoming more of a factor. Earlier Monday, there was a $58 billion auction of 3-year Treasury notes . Tuesday will see a $42 billion auction of 10-year Treasurys, and Wednesday will bring a $25 billion auction of 30-year bonds . Election : Back to stocks, it’s not a surprise to see some wait-and-see in the market ahead of Tuesday’s U.S. presidential election, which increasingly looks like a tight race. As we scan across what’s happening in the market, we see outperformance in stocks that were hit when Donald Trump led by more in the polls. For example, stocks with tariff risk like Club stocks Best Buy , Stanley Black & Decker , Home Depot , and Constellation Brands rallied. A less strict immigration policy would also be a tailwind for Constellation, the maker of Modelo and Corona, due to its strong ties to the Hispanic community through its Mexican beer portfolio. CEO Bill Newlands has previously downplayed the risks of higher tariffs on “Mad Money.” Mixed signals : Speaking of “Mad Money,” Coterra Energy Chairman and CEO Tom Jorden will be on the show Monday evening. This appearance comes after the company reported third-quarter results last Thursday and held its earnings conference call Friday. It’s a good time to check in with Jorden because the quarter was initially well received as indicated by the stock’s up-open last Friday, but it reversed hard during the conference call and ultimately the session finished down 5%. Piper Sandler raised its Coterra price target to $32 per share from $31 on Monday and maintained its overweight buy rating. Piper characterized the Club name’s results as “strong” but said they were overshadowed by M & A risk. The market didn’t like Jorden’s unprompted comment about what he needs to see in a deal to cause Coterra to “stretch.” The company is known for its discipline and prudence, making it odd to hear Jorden address big M & A, even if it was brief. There may have also been confusion around management’s theoretical comments about discontinuing the use of Simul-frac, which has unlocked a lot of capital efficiencies. They were hesitant to commit to this drilling technique next year to maintain flexibility in a volatile commodity environment. Up next: After the closing bell, Palantir, Cleveland-Cliffs, Him’s & Hers, Wynn Resorts, Astera Labs, Illumina, Realty Income, Diamondback Energy, and Vertex Pharmaceuticals are among the companies reporting earnings. Club name DuPont is scheduled to report Tuesday before the opening bell. We expect to see more signs of a recovery in its semiconductor/electronics business and we’ll be listening to commentary about its China water treatment business. Some other companies scheduled to report Tuesday morning are Archer Daniels Midland, Builders First Source, Restaurant Brands, and Emerson Electric. We will also be checking early election data on Wednesday, but we don’t plan on making any substantial changes based on the outcome. (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.
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