Naughty Flicks

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuEvery 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. Stocks are extending their recovery rally to a second straight session after Thursday’s postelection market slump. The S & P 500 is up more than 2%, and the Nasdaq is up more than 2.5% on Monday. That’s despite an over 5% drop in Nvidia , which is being dragged down by the turmoil surrounding CEO Jensen Huang. While the S & P 500 and Nasdaq still have work to do, their back-to-back wins have clawed back a lot of Thursday’s losses. Every S & P sector is in the green, with industrials up 3.8%, consumer discretionary up more than 3%, and materials and tech each up 2.5%. Two of our industrials, GE Vernova and Eaton, which also have exposure in the data center, are big winners. We trimmed Eaton earlier to lock in some profits . Other top performers in the portfolio include Qnity Electronics , whose products are crucial to semiconductor manufacturing, memory-chip maker Micron , and Starbucks away from tech. Amazon is also up more than 3%. Jim Cramer called the stock a buy on the belief that a slowdown in data center construction would benefit the incumbent cloud giants. Both of our drug stocks are participating in Monday’s market rally, as investors chew over new trial data for key fledgling products. Eli Lilly is up over 4%, while Johnson & Johnson is up just over 2%. Lilly announced positive late-stage results for weight-loss pill Foundayo in reducing the severity of obstructive sleep apnea, or OSA, in adults with obesity. The drugmaker plans to apply for an expanded label with the Food and Drug Administration by year-end, following a similar trajectory as its blockbuster injectable weight-loss drug Zepbound. First approved for obesity in late 2023, Zepbound was later cleared for OSA in December 2024. Securing approvals in comorbidities beyond obesity can help improve insurance coverage for the drug, and create “a sense of urgency” among doctors and patients to “do something beyond weight,” Lilly executive Ilya Yuffa explained at a Citigroup conference last year. Since being approved this spring, Foundayo is working to close the gap on Novo’s Wegovy pill in the oral GLP-1 race, so the addition of obstructive sleep apnea to its list of approved conditions could help. Wegovy’s label does not include OSA. One potential word of caution: the FDA on Monday said Lilly and Novo will need to add warnings to their current GLP-1s about increased risk of a serious eye condition associated with use of the medications. The market reaction Monday suggests investors aren’t spooked by this news. The side effect is rare, based on incidence data cited by the FDA. In a statement to CNBC, a Lilly spokesperson said, “”Patient safety is Lilly’s top priority. FDA’s drug safety communication applies to all medicines with GLP-1 RA activity and does not reference any findings specific to Lilly medicines. We are carefully evaluating the update and will respond to FDA promptly. For J & J, the positive trial news covers its plaque psoriasis pill Icotyde, which was cleared by the FDA in March and represents a key long-term growth driver. The company said on Saturday that Icotyde delivered improvement in psoriatic arthritis, or PsA, in a bid to expand its label of approved conditions. “Taking into account Icotyde’s efficacy, clean safety and oncedaily oral convenience, we believe approval in PsA should help drive adoption in [plaque psoriasis]. We note that JNJ previously indicated that roughly 30% of [plaque psoriasis] patients have underlying joint disease and are at risk of progressing to PsA,” analysts at Leerink wrote to clients Sunday. Capital One shares fell for most of the session after Sen. Elizabeth Warren said in a Sunday interview on CBS’s “Face the Nation” that she is ready to introduce a bill capping credit card interest rates at 10%. Warren’s comments do not come as a surprise following the Democratic sweep at midterms. In fact, Capital One dipped last Wednesday by about 1% despite the initial postelection rally, reflecting some chance that a cap could happen. And this isn’t the first time this year we’ve seen support for a credit card interest rate cap. Back in January, President Donald Trump asked lawmakers through a series of social media posts to put a 10% cap on for one year. But the initiative fizzled out likely because many business leaders spoke about the extreme negative ramifications it could have on the economy. JPMorgan CEO Jamie Dimon called an interest rate cap “an economic disaster” in January, and Capital One’s Richard Fairbank said that a cap would make credit much less available for consumers and “would catalyze a number of unintended consequences.” The possibility of a cap reducing or eliminating the availability of credit was one of two points Wells Fargo bank analyst Mike Mayo said in a note to clients on Sunday in which he took the position that these headlines have “more bark than bite.” The other main point was that it’s more likely that a cap would be put on new spending, not existing balances. Mayo also warned that an unintended consequence of a cap could be pushing more consumers into the shadow banking industry, where regulatory oversight and consumer protections can be weaker. We are in the Dimon, Fairbank and Mayo camp when it comes to the potential economic consequences of an interest rate cap. But we aren’t buying the dip in Capital One just yet out of respect for the headline risk that could continue to weigh on shares. After the closing bell Monday, we’ll hear from Take-Two Interactive and Occidental Petroleum . On Holding reports before the opening bell on Tuesday. On the data side, on Tuesday we’ll see the October consumer price index report. Economists polled by FactSet are expecting a 0.3% month-over-month increase and a 4% year-over-year increase. (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.Read More