Every day of the week, the CNBC Investing Club with Jim Cramer publishes the HomestreTrech – an exploitable afternoon update, just in time for the last hour of negotiation at Wall Street. Market update: Actions have made a significant return of their early session. What is remarkable is that the S&P 500 began its rebound just after its break below the lowest of March 13 of 5504.65. This retest comes only two days before the Trump administration could impose reciprocal prices targeting “all countries”. Increased dividend: there is no surprise, TJX companies have officially announced a 13% increase to its quarterly dividend. The company announced the move for the first time last month when it declared better results than expected for the fourth quarter. The higher payment pushes the dividend yield at approximately 1.4%, so TJX is hardly what we would describe as a stock of dividend income. But safe and higher dividends stocks could come back to the point if the treasury yield at 10 years continues to drop. Only two actions in the portfolio currently have a dividend yield north 3%: Bristol Myers Squibb and Cotera Energy. The two actions surpass the larger market on Monday. Signs of an agreement: if you wish to assess the feeling of the market on a merger closure, a simple means is to compare the course of the action of the company acquired with the terms of the agreement. Capital One acquires Discover in an All-Stock transaction where a share of DFS allows you to 1,0192 COF shares. In theory, if the agreement was to be concluded on the closure of the business on Monday, each discovery share was worth around $ 181.18, or 1,0192 times the capital share price of approximately $ 177.89 depending on the current prices. The reason why Discover is not negotiated with the conditions of the agreement – the action is currently $ 171 – is that the market is less positive than the agreement will be concluded. If the discover discovery is negotiated under the agreement is narrowed, the market gives the agreement a greater probability of closing. If the discount widens, there is a lower probability that it closes. We talk about all of this because the most efficient stock of S&P 500 Monday is Discover Financial Services. The stock rally and the merger delivery is narrowed after a publication called Capitol Forum said Friday evening that the Ministry of Justice cannot file a complaint against Capital One in its subprime sector and refocuses its examination on how it could have an impact on consumers without credit history. The story is important because two weeks ago, Capital One shares were sold at around $ 165 after the same publication said that the DoJ could challenge the agreement. Analysts did not take long in Capital on the defense of its capital, noting that the agreement would always be accessible if the discovers’ subprime portfolio was sold. As a reminder, the agreement must still be approved by the federal reserve and the office of the currency controller. We also monitor a trial brought by the Trump organization as a potential roadblock. Other current transactions: Dupont plans to sell two brands in its safety portfolio, according to Bloomberg. Kevlar and Nomex would be for sale and could be worth around $ 2 billion in an agreement. We are not surprised to see Dupont in the headlines exploring the diversions – President Ed Breen is known to make realization. But what makes this story interesting is that it occurs more than two months after the company has decided to transform its evasion strategy to three companies in two by putting an end to its plans to separate its aquatic activity. One of the possible reasons why Dupont decided to keep the water sector was to stimulate the investment case for the new Dupont, which will be exposed to companies in terms of safety, shelters and other industrial solutions such as health care. As a reminder, the electronics spin-off should be completed on November 1. Dupont lost its Kevlar and Standlex could be a very positive development. If companies are sold at a good price, Dupont can take the treasury product and buy companies in secular growing industries such as water and health care. By reshaping its portfolio, the new Dupont could recover a higher multiple on the market, helping the action to reduce its delivery to its sum of the parts. Next: It’s a quiet week for income. The only notable company reporting after the closure of the bell on Monday is the PVH Corp. There are no major reports before the opening bell on Tuesday. On the data side, there is the final reading of March S&P Global US Manufacturing Pise and February Jolts Openings. (See here for a complete list of Jim Cramer’s Charitable Trust’s actions.) As an abundance at CNBC Investing Club with Jim Cramer, you will receive a commercial alert before Jim is doing a business. Jim is waiting for 45 minutes after sending a commercial alert before buying or selling a stock in the portfolio of his charitable trust. If Jim spoke of a stock on CNBC TV, he waits 72 hours after issuing the commercial alert before running the trade. The above information of investment clubs is subject to our terms and conditions and our privacy policies, as well as our warning. No obligation or fiduciary duty exists, or is created, due to your reception of the information provided in relation to the investment club. No specific result or profit is guaranteed. The screens display logos and commercial information for Capital One Financial and Discover Financial, because traders work on the prosecution on the New York Stock Exchange on February 20, 2024.
Brendan McDermid | Reuters
Every day of the week, the CNBC Investing Club with Jim Cramer publishes the HomestreTrech – an exploitable afternoon update, just in time for the last hour of negotiation at Wall Street.