The decline in the stock market is approaching a level that tempts us to buy
Every weekday, CNBC Investing Club with Jim Cramer publishes Homestretch – an actionable afternoon update just in time for the final hour of trading on Wall Street. (We are no longer recording the audio so we can make this new written post available to members as quickly as possible.) Market decline: Concerns about resurgent inflation and a possible Iranian attack on Israel sent stocks lower on Friday. The Dow, S&P 500 and Nasdaq each lost more than 1% on the session and were also headed for weekly losses. Not even a drop in bond yields on Friday helped stocks, as is often the case. Flight-to-safety trading – bond purchases that mean yields fall – was noticeable and a rise in oil prices due to Middle East worries also created headwinds. The recent tightening of price pressures also weighed on the market on Friday after the University of Michigan consumer sentiment survey showed higher inflation expectations for the coming year and long-term inflation expectations. Investors were already nervous after the March consumer price index rose on Wednesday. As Jeff Marks, the club's director of portfolio analysis, said during Friday's morning session, Wall Street's weakness on Friday could push the entire stock market into oversold territory. We'll find out when the S&P 500 Short Range Oscillator comes out after the closing bell. In oversold markets, our club discipline requires us to look for stocks to buy. Marks said Friday that we're considering another Best Buy expansion next week. He also said beer giant Constellation Brands could be a buy due to further weakness for club members who don't already own beers. Constellation reported a solid quarter on Thursday. Middle East Concerns: West Texas Intermediate crude, the U.S. oil benchmark, jumped on Friday, at one point topping $87 a barrel on concerns about Middle East supplies. The open risk of Iranian aggression has been simmering since last week, when Israel launched a deadly missile attack on the Islamic Republic's consulate in Damascus, Syria. Iran's proxies have been firing on the Jewish state for months as the war between Israel and Hamas rages on. WTI has been up and down over the last few sessions – and even with Friday's rise, it looks like the week is headed for a losing week. Three Weekly Winners: Despite the red tide, there were some portfolio stocks in the green this week. Palo Alto Networks rose nearly 4% for the week. Tuesday was particularly strong after the cybersecurity company announced an expanded partnership with Google Cloud. The Google Cloud Next event, which began Tuesday, also boosted Alphabet shares by more than 3% this week. Apple's weekly gain of nearly 3.5% mirrored Thursday's rise, which was the best single session for the iPhone maker's shares since last May. Apple's nearly 9% year-to-date decline appears to be an attractive level for hedge fund investors, JPMorgan wrote in a note this week. Three weekly losers: Most of our stocks were in the red this week. Foot Locker has fallen more than 8% in the last five sessions. Thursday was a bright spot and the sneaker retailer presented its annual report. But that was the only positive meeting in the last 11 years. Ford fell nearly 5.5% this week after falling more than 3% on Tuesday and Friday. Ford said late Thursday that it was preparing to resume deliveries of the F-150 Lightning and cut prices on some models. Earlier Friday, we explained why we want Ford to differentiate itself from its crosstown rival's strategy. Meanwhile, Morgan Stanley fell 7% this week after it said Thursday that U.S. regulators, including the Office of the Comptroller of the Currency and the Securities and Exchange Commission, are investigating the bank's asset management business over concerns about money laundering. Next week: Morgan Stanley reports earnings before the opening bell on Tuesday, following better-than-expected quarterly results from our other financial holding company, Wells Fargo, before the opening bell on Friday. Club holdings Abbott Laboratories and Procter & Gamble will also deliver their latest quarters next week, on Wednesday and Friday mornings, respectively. The coming week will be less strong in terms of economic data: retail sales will be released on Monday, followed by housing starts on Tuesday and jobless claims on Thursday. (A complete list of Jim Cramer's Charitable Trust stocks can be found here.) As a subscriber to 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 foundation's portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. 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Every weekday, CNBC Investing Club with Jim Cramer publishes Homestretch – an actionable afternoon update just in time for the final hour of trading on Wall Street. (We are no longer recording the audio so we can make this new written feature available to members as quickly as possible.)
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