Every weekday, CNBC Investing Club with Jim Cramer publishes the Homestretch – an actionable afternoon update, just in time for the final hour of trading on Wall Street. (We are no longer recording audio, so we can get this new written article out to members as quickly as possible.) Market Pullback: Stocks dipped slightly in the absence of news shortly after the end of the morning meeting, but recovered some losses. This decline occurred even as Treasury and oil yields fell. Both have been headwinds in the market lately. Real estate, utilities and consumer staples outperformed while financials, industrials and energy sectors lagged. Nvidia versus Intel? : One of the stocks that led the decline mid-morning was Nvidia. We initially thought the decline was due to lack of news, but Intel then issued a mid-day press release about its new AI chip, called Gaudi 3, which the company says is better in training and inference than Nvidia’s H100. Intel also claims that it is more energy efficient than Nvidia chips at a competitive price. Intel shares rose about 1% in trading while Nvidia fell more than 2%. Intel shares are down about 24% in 2024, compared to a 71% gain for Nvidia. While we never want to dismiss a new competitive threat at first glance, we’re skeptical that Intel has anything to do here. Given the company’s track record, it’s no surprise that its stock isn’t performing after these high-profile claims. That’s because it’s one of the biggest overpromises and underdeliverers in the entire tech industry. We saw Intel make similar claims with its previous generation Gaudi 2, and nothing came of it. We will work more on this announcement, but for now we cannot take this seriously. Upgrades/downgrades: Banking earnings season kicks off this Friday with scheduled releases from Wells Fargo, JPMorgan and Citigroup. Before the results were released, Wells Fargo was downgraded to neutral by a research firm called Compass Point. Wells has also been downgraded by KBW and Citi since early March, with valuation a point of debate after the stock’s strong gains in 2024. “I know Wells Fargo has moved and there have been a lot of downgrades, but I want to point out that this stock was worth $62 six years ago, when the market was much lower,” Jim Cramer said. “It’s way behind the market.” Wells Fargo will report its first quarter results Friday before the opening bell. Meanwhile, Cramer criticizes Freeport-McMoRan’s upgrade after the stock gained 35% since early March. “I don’t like that recommendation from Freeport,” Cramer said. “It comes after a parabolic movement. It’s not wise.” Other items: Cramer points out that Amazon hit a new all-time high this morning, but it has since reversed lower. “It’s a shame because nothing happened. Better to wait until we have something.” We also keep an eye on the GE family of companies. “GE Vernova, even up two, is great because it’s down sharply from the peak,” Cramer said. “But GE Healthcare, as it goes lower, represents a better value. Next: Wednesday’s key event is the March Consumer Price Index (CPI), which measures changes in the prices paid for goods and services by consumers. The index is a good indicator. inflation and could impact monetary policy expectations, which is why rates and stocks tend to be volatile on the day of The CPI index is expected to rise 3.4% year-over-year, a slight acceleration from February’s 3.2%, and the energy index is expected to rise 3.7%, which would be slightly higher. low as in February. (See here for a complete list of Jim Cramer’s Charitable Trust stocks.) As a subscriber to CNBC Investing Club with Jim Cramer, you receive a trade alert before Jim makes a trade. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charity’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trade. alert before executing the transaction. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY OBLIGATION EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Intel CEO Patrick Gelsinger speaks at the Intel Ocotillo campus in Chandler, Arizona, March 20, 2024.
Brendan Smialowski | AFP | Getty Images
Every weekday, CNBC Investing Club with Jim Cramer publishes the Homestretch – an actionable afternoon update, just in time for the final hour of trading on Wall Street. (We are no longer recording audio so we can get this new written feature out to members as quickly as possible.)
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