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. Thursday markets: Stocks are taking a breather after Wednesday’s big surge, especially in the Nasdaq Composite and the more narrow “Magnificent Seven” cohort. The yield on the benchmark 10-year Treasury note broke above 4.3% after a look at wholesale inflation for November, known as the producer price index, came in a little on the hotter side. Nevertheless, the market still overwhelmingly expects the Federal Reserve to cut interest rates by a quarter percentage point at its policy meeting next week, which would bring its target range to 4.25% to 4.5%. What happens in 2025 remains up for debate, though. We would not be surprised to see a “hawkish cut” next week, with the Fed continuing its messaging that it is in no hurry to lower interest rates. Separately, it was a historic day at the New York Stock Exchange with President-elect Donald Trump ringing the opening bell. Jim Cramer had the opportunity to interview Trump on the floor the exchange. Here’s a closer look at some of Trump’s comments on the stock market and important trends such as artificial intelligence and growing electricity demand. Bristol dividend boost: Bristol Myers Squib announced late Wednesday a 3.3% increase to its quarterly dividend, bringing its annualized payout up to $2.48. With its recent slide to around $56 per share, the stock is now trading with a bountiful 4.4% dividend yield — and we are eyeing our next buy of the drugmaker, which we like for its innovative schizophrenia treatment. At around $56 and change, the stock is only about 4% above where it traded before AbbVie ‘s rival schizophrenia drug failed to meet its primary endpoint in a pair of mid-stage trials. Bristol Myers stock jumped from $54.14 to $59.82 on AbbVie’s Nov. 11 update, and the fact that it’s given back more than half of those gains looks like an opportunity. It was a huge moment for Bristol Myers because rather than looking like it had a big lead in schizophrenia, it seems like it might have this space to itself for a while – at least when it comes to novel approaches to treating the disease. That’s a big, financially lucrative difference. Up next: Two companies in the portfolio report earnings after Thursday’s closing bell: Costco and Broadcom. For Costco, the sales figures are already understood since the company reports them every month. That’s why we’ll be more focused on membership fee growth and trends, and how the company is investing to keep prices down. For Broadcom, the three things we are watching are: (1) AI sales, both custom chips and networking, (2) the recovery of its legacy semiconductor business, and (3) the VMWare integration. Broadcom shares surged Wednesday on a media report that said Apple is considering partnering with Broadcom for a custom AI chip. But Broadcom shares gave back some of those gains Thursday after Bloomberg reported Apple plans to switch out Broadcom’s Bluetooth and Wi-Fi chips next year for an in-house component. This is a little contradictory to the Bloomberg story last Friday that reported on Apple’s plan to switch out Qualcomm’s modem system but continue its relationship. Could this be a situation where Broadcom loses its wireless partnership but gets a big AI win that could be more lucrative over time? Time will tell. (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.