Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch – an actionable afternoon update, just in time for the final hour of Wall Street trading. Market People: Wall Street was able to hold on to strong gains on Wednesday despite the Federal Reserve signaling just one interest rate cut this year, based on the median point projection. This, of course, can change if the data changes. The Fed left rates unchanged after the two-day June meeting, as expected. The S&P 500 and Nasdaq hit all-time highs after a cooler-than-expected consumer price index flat for May. Excluding housing, which remained stubbornly high, we saw a month-on-month decline of 0.2%, which was encouraging. During his post-meeting news conference on Wednesday afternoon, Fed Chairman Jerome Powell acknowledged progress in inflation but said it remains too high. Powell emphasized that tariff decisions are data driven and not premeditated. However, with Walmart and Target also cutting prices on thousands of items, future inflation readings could continue to go Powell’s way. Dow drags: The Dow barely moved on Wednesday. While closely followed, the 30-stock moving average is not a good barometer of the broader market because it is price-weighted. The S&P 500 is market cap weighted. The Dow also lacks the technological pull of the Nasdaq’s rise. Some notable Dow laggards were Nike, Salesforce, Chevron, Boeing, Verizon, Procter & Gamble and Johnson & Johnson. Some of these declines can easily be explained by market sentiment when it anticipates rate cuts. Tech, real estate and more economically sensitive stocks tend to perform better when the market thinks a mild economic downturn is coming, while more defensive areas like staples, utilities and healthcare take second place. “Out of the portfolio, I think Johnson & Johnson is starting to really stick with its talc solution; she can win enough plaintiffs to get it right,” Jim Cramer said. “It’s risky — might even want to do it with calls for a few months. But I think it’s worth $10 a share.” Next up: Broadcom is the top earnings report of the night, not just because it’s in the portfolio. The quarter and the outlook of its artificial intelligence business will give us another read on how wild the investment is in this new technology. Oracle’s quarter and commentary painted a very strong picture of cloud spending — explaining why the group came under fire once again on Wednesday. “The company that might be most analogous to Broadcom’s non-AI business is Skyworks Solutions. It’s very used to the traditional mobile (smartphone) business that happens to be part of Broadcom which is very slow. The action at SWKS is very constructive for AVGO said Cramer. (See here for a complete list of stocks in the Jim Cramer Charitable Foundation.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade waits 45 minutes after sending out a trade alert before buying or selling a stock in his charitable trust 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 INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY.NO OBLIGATION OR FIDUCIARY DUTY EXISTS, OR IS CREATED, BY YOUR ACCEPTANCE OF ANY INFORMATION CONTAINED IN. INVESTMENT CLUB IDEA . NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch – an actionable afternoon update, just in time for the final hour of Wall Street trading.
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