Every weekday, Jim Cramer’s CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street. Thursday’s market: Stocks are taking a breather after Wednesday’s big rally, especially in the Nasdaq Composite and the narrower “Magnificent Seven” cohort. The yield on the benchmark 10-year U.S. Treasury note rose above 4.3% after wholesale inflation, known as the producer price index, rose slightly in November. Despite this, the market still overwhelmingly expects the Fed to cut rates by a quarter of a percentage point at next week’s policy meeting, which would bring the target range to 4.25% to 4.5%. However, what will happen in 2025 is still up for debate. The Fed continues its message that it is in no hurry to cut rates, and I wouldn’t be surprised if we see a “hawkish rate cut” next week. Separately, it was a historic day at the New York Stock Exchange as President-elect Donald Trump rang the opening bell. Jim Cramer had the opportunity to interview Trump on the exchange floor. Here’s a closer look at some of President Trump’s comments on the stock market and important trends such as artificial intelligence and increased demand for electricity. Bristol Dividend Hike: Bristol-Myers Squibb announced late Wednesday that it will increase its quarterly dividend by 3.3%, bringing the annual payout to a maximum of $2.48. The stock has recently fallen to around $56 per share, and the company’s stock currently trades at a high dividend yield of 4.4%. And we’re keeping an eye on the drug company’s next purchases, which we love for its innovative schizophrenia treatment. The stock has fluctuated around $56, just about 4% above where it was before AbbVie’s competing schizophrenia drug failed to meet its primary endpoint in two mid-stage trials. The fact that AbbVie’s Nov. 11 update sent Bristol-Myers’ stock price soaring from $54.14 to $59.82 and more than half of that gain has been returned looks like an opportunity. This was a big moment for Bristol-Myers. That’s because the company didn’t seem to have a huge lead in schizophrenia, and it seemed like it might have the space to itself for a while, at least when it came to new approaches to treating schizophrenia. . This is a big economic difference. Next article: Two companies in our portfolio, Costco and Broadcom, will report earnings after the closing bell on Thursday. In Costco’s case, sales are reported monthly, so they are already known. As such, we will focus more on dues growth and trends, and how the company is investing to keep prices down. For Broadcom, our focus is on (1) AI sales (both custom chips and networking), (2) recovery of the legacy semiconductor business, and (3) VMWare integration. Broadcom stock soared Wednesday following media reports that Apple is considering partnering with Broadcom on custom AI chips. But Broadcom stock regained some of its gains Thursday after Bloomberg reported that Apple plans to replace Broadcom’s Bluetooth and Wi-Fi chips with its own components next year. This somewhat contradicts a Bloomberg article from last Friday that reported on Apple’s plans to switch Qualcomm’s modem system but continue the relationship. Could this be a situation where Broadcom loses its wireless partnership but wins big in AI and could potentially make even more money over time? Time will tell. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
Every weekday, Jim Cramer’s CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street.
