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. Markets: The S & P 500 is slightly higher and on pace to break a three-day losing streak, but it’s been a choppy session. The tech-heavy Nasdaq is outperforming the S & P 500 and Dow Jones Industrial Average thanks to Tesla ‘s 20% surge on earnings and an upbeat outlook. There’s some strength in other parts of the broader technology complex such as software. Club names Salesforce , Palo Alto Networks and CrowdStrike are higher after ServiceNow ‘s strong quarter. Salesforce also had its price target raised to $330 a share from $300 by Oppenheimer. More broadly, equities may be getting some help from the bond market. The yield on the 10-year Treasury note pulled back below 4.2% after hitting its highest levels since late July on Wednesday. Industrial pain : The industrials are having a rough day. Portfolio stocks Honeywell and Dover aren’t the only ones lower after earnings . Carrier Global is the worst-performing stock in the group after its HVAC sales disappointed. Aerospace player Textron fell after it missed earnings estimates — though its own machinists union strike pressured the results — while railroad operator Union Pacific missed on both revenue and earnings. Sure, United Parcel Service is rallying on earnings. But its stock entered the session down 16% year to date and sentiment was terrible after Barclays downgraded UPS to a sell-equivalent rating on Monday. Expectations matter during earnings season. A better-than-feared quarter when the bar is low can sometimes lead to a more positive one-day stock reaction than a beat-and-raise print from an existing outperformer. It’s a good lesson to remember going forward. We’re still early into third-quarter earnings season, but some of the biggest upside surprises in this sector are coming from companies tied to aerospace, data centers, and the power generation theme. In other areas, there appears to be some caution tied to election uncertainty while others are still feeling the effects of higher interest rates. Dover CEO Richard Tobin discussed the dynamic on the company’s third quarter earnings call earlier Thursday . “I think we would have hoped that interest rates would have had a bigger impact in the second half of ’24 on volume,” Tobin said. “But I think because of election uncertainty and a variety of other things, you can feel a little bit of caution out there.” The bright side is that industrial activity should improve in the quarters ahead, especially if the Federal Reserve continues to ease monetary policy. That’s why we want to stick with companies like Dover and Honeywell. Up next: We’ll see earnings after the closing bell from Dexcom , Deckers Outdoor , Skechers , Edwards Lifesciences and Boston Beer . Dexcom is a rival of Club name Abbott Laboratories in the continuous glucose monitor market, so we’ll be looking for any insights into the competitive dynamics of that growing space. The last time Dexcom reported, its shares tanked 41% in response to light sales and guidance. The earnings calendar is on the lighter side Friday, with reports from Colgate-Palmolive , Centene , Rubbermaid owner Newell Brands , AutoNation , and New York Community Bancorp . On the economic data side, we’ll see durable goods orders from the Commerce Department and University of Michigan’s monthly consumer sentiment survey. (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.
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