Thawing of IPO market is good news for Goldman Sachs, car stocks catch a break

CNBC

15 hours ago

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market update: The major averages are off their highs of the day, but holding on to early morning gains made on the back of a stronger-than-expected May nonfarm payrolls report. As discussed during the meeting , we need to be conscious of the real risks out there — like a resurgence of inflation on the back of tariffs or a need for job cuts in the auto sector due to a lack rare earth metals needed to manufacture vehicles — but it's hard to get too negative on the overall market so long as the U.S. consumer remains employed. Ultimately, there is still a lot to like about the stock market for those ready and willing to the research and focus on the fundamentals. Shares of Lululemon are under significant pressure Friday after the apparel retailer reported a better-than-expected quarter but cut its outlook for the full year due to the "dynamic macroenvironment." The news is just the latest reminder that while the economy is holding in thanks to low unemployment, consumers still feel the pressure of high prices and may look to alter shopping activity. In this case, the news bodes well for shares of Club holding TJX Companies , which provides some of the best value around when it comes to apparel and home goods. Automaker stocks are getting some relief Friday following a report from Reuters that China granted temporary export licenses to suppliers of the big three U.S. automakers ( Ford , General Motors , and Stellantis ) for rare earth materials. More IPO news: Crypto exchange Gemini unveiled plans to go public in a new confidential filing with the Securities and Exchange Commission on Friday. This comes one day after stablecoin issuer Circle 's IPO, which saw the stock advance roughly 168%. Prior to that, CoreWeave started trading on the Nasdaq in late March in the biggest venture-backed tech IPO since 2021. Next week, fintech firm Chime will debut on the exchange as well. All of this action is a good indicator that more companies will go public, according to Jim Cramer. That's great news for Club holding Goldman Sachs' crucial investment banking business. The Wall Street bank derives revenues from facilitating these kinds of deals as an underwriter or through advisory fees. It also signals a potential rebound for a key division in Goldman. M & A and IPO activity has been lackluster in recent years as macroeconomic uncertainty and the regulatory environment has kept companies on the sidelines and more conservative with capital. "After we figure out tariffs, it's going to be mergers. It's very hard to do it right now, but I think Goldman Sachs is very attractive right here," Jim said Friday. Next week: We've got Apple's WWDC event kicking off Monday, where investors will look for any signs of progress with the company's AI strategy. We've also got Nvidia's GTC event in Paris starting on Tuesday. Tesla is expected to launch it's robotaxi service in Austin, Texas, in the back half of the week. On the economic front, we'll get an update on inflation with the May consumer price index out Wednesday. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the 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 trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.