Each weekday, CNBC Investing Club with Jim Cramer publishes the Homestretch — an actionable afternoon update, just in time for the final hour of trading on Wall Street. Rotation Back: The S&P 500 and Nasdaq started the week with losses. While the Dow was flat in afternoon trading, it hit a record high earlier in the day. The Russell 2000 managed to hold on to slight gains. We attribute this divergence to a renewal of the “stretching rotation,” which is lifting stocks of companies that benefit from lower interest rates and dumping long-term growth stories — mainly stocks tied to artificial intelligence and data center proliferation. The latter will not benefit as much from the Federal Reserve’s rate cuts, which the market believes will begin next month. Also working against the market is how overbought it has become, according to the S&P Short Range Oscillator. We’d like to see the oscillator pull back significantly from overbought levels before putting money on dips. We covered Best Buy on Monday ahead of its earnings release on Thursday. Every time we mention the oscillator, we’re inundated with requests from club members: “How do we get access?” Well, we went straight to the source, our partners at MarketEdge, the data provider that publishes the oscillator. We’re happy to report that club members can now get an exclusive discount on this helpful tool. Click here. Overseas Expansion: In case you didn’t see it on social media, Costco opened a new warehouse in Okinawa, Japan, with great fanfare over the weekend. People waited for hours just to get inside. The early success of a new warehouse is probably not big enough to relocate a company like Costco, with a market cap of nearly $400 billion. But the cult-like love for the wholesaler abroad speaks to its ability to continue opening new stores around the world, and that expansion opportunity is what can drive the stock price higher. Costco stock hit a new all-time high on Monday. We wrote about the importance of Costco’s overseas expansion plans back in January, when there was an uproar over the opening of a store in Shenzhen, China. Mark the date: Apple has announced a press conference for September 9. That’s when the company is expected to unveil new iPhone and Apple Watch models. Everyone wants to know about the latest iPhones. The reason is that once the software is available, they’ll be able to run Apple Intelligence, the company’s new AI features announced in June at the annual Worldwide Developer’s Conference. Our thesis was that integrating AI features into the iPhone will be the catalyst for a major upgrade cycle, so we look forward to learning the price of these phones and getting more information about when Apple Intelligence will be ready. Up next: There aren’t many big earnings reports or economic data coming out in the next few days. The big market-moving events like Nvidia earnings, initial jobless claims and the personal consumption expenditures (PCE) price index are in the middle and end of the week. The online travel agency releases travel reports on Monday evening and may be able to provide some clues about consumer willingness to travel. (A full list of stocks in Jim Cramer’s Charitable Trust can be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. After sending a trade alert, Jim will wait 45 minutes before buying or selling a stock from his Charitable Trust’s portfolio. If Jim has discussed a stock on television, he will wait 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION MENTIONED ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTIES EXIST OR ARE CREATED BY RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. No particular result or profit is guaranteed.
Every weekday, CNBC Investing Club with Jim Cramer publishes the Homestretch – an actionable afternoon update, just in time for the final hour of trading on Wall Street.
