Jim Cramer is contemplating selling more of this tech giant after big rally to record highs
Every weekday the CNBC Investing Club with Jim Cramer releases the Homestretch audio feature in time for the last hour of trading on Wall Street. Here’s today’s edition. Market moves: Stocks are still higher today but off their highs of the morning. Things that caught our eye include Eli Lilly and Broadcom overtake Tesla in market cap due to today’s selloff in the EV maker. On the regulatory front, the Federal Trade Commission issued orders to Alphabet , Amazon , Microsoft , OpenAI, and Anthropic requiring them to provide information about their investments and partnerships involving generative AI. Tech titan moves higher: There are Super Six stocks down Thursday but Alphabet making a new high. We think we should sell some because these stocks have had such a huge run that has continued into the new year. Next week is the big week of earnings where expectations are going to be high to beat numbers. These tech names are still the stocks we want to be in long-term. China stocks bounce: Elsewhere, our portfolio’s China-focused stocks are making moves. Shares of Wynn Resorts are higher after Las Vegas Sands reported last night and was upbeat about Macao. Estee Lauder rose after LVMH reported its results. Organic revenue beat expectations and Perfumes & Cosmetic sales grew 10% (vs. 9.41% estimates), but Asia excluding Japan missed so it still may be too early to hope a turn. Our automaker Ford is also up after Tesla reported a disappointing earnings print. In a slower EV demand environment, we like Ford’s strong lineup of ICE and hybrid vehicles. On the downside: Looking at what’s down in the portfolio Thursday are a handful of stocks that have had big runs including Costco , Palo Alto , Broadcom and Eli Lilly . Since there’s no specific news on the stock moves, it could be that investors are taking some profits after their big runs. Stay cautious: Jim tossed around the idea of adding another cyclical stock. He made his case for Dow Chemical since Dupont is in the penalty box. Dow on the other hand is unique in how strong it has been in this point in the cycle with not a lot of inventory coming on. “We haven’t paid enough attention to inventory,” Jim said. “If its got a lot of inventory, please be careful,” he added. Jim said he wouldn’t surprise him if Tesla had a lot of inventory. (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.
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