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. Wall Street is selling off Friday, wrapping up what’s been a volatile week for stocks. The tech-heavy Nasdaq is down about 2.2%, followed by a 1.2% decline for the S & P 500 . The blue-chip Dow is down about 300 points, or 0.6%. Working against the market on Friday was WTI crude ‘s climb back to $100 per barrel and an uptick in Treasury yields. Although the S & P 500 is only down 2% from the record close it set on Oct. 6, AI-related technology and infrastructure stocks are under significant pressure on concerns about the rising cost of capital to fund the data center buildout and slowing revenue growth at Anthropic. The iShares Semiconductor ETF , or SOXX, is down another 3% on Friday and has now pulled back about 15% since its last positive day on Oct. 5. Club names Intel , Nvidia , Micron , and Broadcom are four of the five biggest positions in the SOXX. We aren’t ready to add to these names just yet, as Jim Cramer said on Thursday’s Monthly Meeting, but we’re keeping an eye on levels where bearishness looks too extreme in the face of still strong demand. The market also came for the once-high-flying cybersecurity stocks this week, with CrowdStrike and Palo Alto Networks among some of the biggest decliners in the portfolio. While tech faltered, the market rotated into defensive consumer staples like Kimberly-Clark , healthcare like Eli Lilly and Cardinal Health , and other year-to-date laggards. In the case of Kimberly-Clark, it wasn’t just rotational dynamics that lifted shares higher. A bunch of things went right for the maker of Kleenex and Huggies, including two regulatory approvals for the Kenvue acquisition and the release of better-than-feared preliminary results for its third quarter. TJX Companies was one of the bright spots this week, with shares rallying about 5%. But in keeping with our comments during Thursday’s Monthly Meeting, we are formally downgrading our rating on TJX to a hold-equivalent 2 after this big run. Sure, the off-price retailer’s stock is still down about $3 from where it traded before the company in August reported a big slowdown in its TJ Maxx and Marshalls division. As disappointing as this was, we thought the slowdown was self-inflicted and fixable, which is why we stuck with the stock and added to our position three times as it slid from $140 to $138 and all the way down to $125 . We kept buying because we simply did not understand why the market ignored management’s comments about an improved August, and we’re glad to see the market come around to our view. But the stock’s rebound from its lows to $147 on Friday — combined with our steady buying — has pushed our TJX position size to about 4.25%. Accordingly, we would take profits Friday to right-size the position if we weren’t restricted from trading it. Earnings season picks up next week , although only two companies in the portfolio are scheduled to report. On Tuesday, we’ll see earnings from Capital One after the closing bell, and Meta Platforms reports Wednesday night. Beyond those names, we’ll see earnings from a handful of industrials like 3M , GE Aerospace , RTX , Lockheed Martin , General Motors , and ex-Club name Honeywell Technologies . Tesla reports too. Within technology, IBM , Lam Research , Western Digital , and Texas Instruments report. A bunch of airlines and railroad operators also fill the earnings calendar, so we’ll be watching how higher fuel prices are impacting profits. Rounding things out are a bunch of regional banks, American Express , Netflix , Procter & Gamble , and oilfield services companies SLB and Halliburton . On the economic data side, it’s thankfully a bit lighter with no jobs or inflation data. Nevertheless, we’ll see housing starts, building permits, October S & P Global U.S. Manufacturing and Services PMI, and the University of Michigan’s survey on consumer sentiment and one-year inflation expectations. (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