![Tech skips Thursday’s rally as S&P moves 500 inches closer to March record Tech skips Thursday’s rally as S&P moves 500 inches closer to March record](https://i1.wp.com/image.cnbcfm.com/api/v1/image/107397461-17123288132024-04-05t140721z_1692998973_rc2e07amvnla_rtrmadp_0_usa-stocks.jpeg?v=1712328852&w=1920&h=1080&w=1920&resize=1920,1080&ssl=1)
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.) Markets: The market is moving higher on Thursday after Wednesday’s quiet session. Thursday’s gains put the S&P 500 within 1% of its March 28 closing record. The Dow, meanwhile, is up about 270 points, or 0.7%, on track for its seventh straight winning day. Stocks benefit from support from the bond market on Thursday. The yield on the 10-year Treasury note was initially higher in early trading, but fell after initial jobless claims rose to their highest levels since August, indicating signs of a softening labor market. This response follows the market’s “bad news is good news” reaction following last week’s April jobs report. Yields fell again shortly after 1 p.m. ET in response to strong demand for a $25 billion 30-year bond auction. We will receive notable economic data reports in the coming days. Friday at 10 a.m. ET, we will receive preliminary results from the University of Michigan’s May Consumer Confidence Survey, which includes consumers’ inflation expectations. And then next week, the April Producer Price Index (PPI) and Consumer Price Index (CPI) are scheduled to be released at 8:30 a.m. ET on Tuesday and Wednesday, respectively. Wall Street will be paying close attention to both reports as a series of higher inflation data in recent months has pushed back the timeline of expected rate cuts by the Federal Reserve. Technology is missing: The only S&P 500 sector in the red on Thursday was technology. A number of solar stocks, which fall into the technology category, were down after SolarEdge gave disappointing second-quarter guidance. Things have been tough for the industry lately. Keep in mind that this cohort is extremely sensitive to interest rates, as many solar systems are purchased with financing. Over the past 12 months, SolarEdge shares have fallen more than 80%. The Invesco Solar ETF is down almost 40% over the same period. Elsewhere in the technology sector, chip stocks were mostly lower on Thursday. Part of this may be due to soft quarterly guidance from chip designer Arm Holdings, but we think these sellers may not have the full picture of what will be a multi-year growth story for AI chips. Indeed, we received a positive read on AI spending earlier this week from Arista Networks, whose CEO Jayshree Ullal is on “Mad Money.” Club holding Salesforce was the worst performer on the Dow on Thursday, down about 1.5%. The decline is likely related to competitive concerns over Alphabet’s reported interest in purchasing HubSpot, which also sells customer relationship management software. HubSpot released its results Wednesday evening and provided mixed forecasts. S&P Leaders: The best performing sectors in the S&P 500 on Thursday were real estate, utilities and energy. Utilities, a classic defensive sector, was by far the biggest gainer this week, up almost 4%. Next up: We’ve looked through the week’s top earnings reports. What’s left tonight is solar tracking company Array Technologies, insulin pump maker Insulet Corp and content delivery company Akamai Technologies. Canadian energy pipeline company Enbridge is expected to submit its report on Friday. (See here for a complete list of Jim Cramer’s Charitable Trust stocks.) 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 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 the trade alert is issued before executing the trade. 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.
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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