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 no longer recording the audio, so we can get this new written feature to members as quickly as possible.) Markets dip: Stocks couldn’t hold onto their early morning gains despite Treasury yields and oil going the right way — in this case, lower — for the bulls. If the losses hold, it will mark the fourth straight red session for the S & P 500 . ” Sometimes the market just wants to come down even if the bonds are better,” Jim Cramer said Wednesday. “The market is flailing. It is making exaggerated several day moves. You look at United Airlines and you know the buyers are willing to pay anything just like they are doing with UnitedHealth Group .” Through Tuesday’s session, the S & P 500 has dropped nearly 4% since its closing high on March 28. But don’t lose sight of the fact that pullbacks of this magnitude are a lot more common than you think. On average, there are four to five of them per year. They tend to come when it is least expected, which is why we are always taking some profits on the way up and keeping cash for rainy days. Those sales help us greet market pullbacks like the opportunity they historically turn out to be. Abbott Labs follow up: It’s come off its lows, but we’re still perplexed about the selling in Abbott Laboratories after its beat-and-raise quarter before the bell Wednesday. The quarter received a ton of praise from Wall Street, with five different analysts on the conference call congratulating management on the quarter. In all seriousness, it’s rare to see Abbott raise its outlook so early in the year. For a company that likes to underpromise and overdeliver, raising numbers so earlier in the year is sign of confidence in what’s to come. We’ll be back buying on more weakness, as we did Wednesday morning . “Everyone is now presuming the worst as you ponder a stock like Nvidia or Arm Holdings or Abercrombie & Fitch or Abbott Labs,” Cramer added. Analyst chatter: There were a couple of calls we didn’t have a chance to cover during the Morning Meeting. One was Barclays raising its price target on chipmaker Broadcom to $1,500 from $1,405 and maintaining its buy-equivalent rating. The analysts said Broadcom has “many ways to win” in artificial intelligence, whether it be through the supply of custom chip solutions or its Ethernet data center networking solutions. The company argues those are better equipped at connecting large AI chip clusters than Nvidia’s InfiniBand solutions. The other was HSBC upgrading its rating on Danaher to buy and raising its price target to $280 from $250. The analysts call Danaher “a quality proxy for the Biotech funding recovery,” which they think is on the right path based on their proprietary funding tracker. We’ve been pointing to the same trend, contending that all the deals happening in the biotech industry bode well for Danaher’s order book. We’ll look for confirmation about the ending of the inventory destocking when Danaher reports quarterly results Tuesday. Up next: There’s a good mix of industrial-related earning reports after the bell, with oil pipeline operator Kinder Morgan , rail operator CSX , and the aluminum maker Alcoa . Thursday morning features Alaska Air , homebuilder D.R. Horton , the regional bank KeyCorp , alternative asset manager Blackstone , and a couple of tools and repair companies in Snap-On and Genuine Parts . (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. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.)
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