Friday's stock market rotation gives a further boost to an out-of-favor sector

CNBC

14 hours ago

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Friday's key moments. 1. The S & P 500 was under mild pressure Friday but headed for another strong week, with a gain of more than 1%. Health-care stocks continued to bounce back at the expense of momentum names such as Palantir and Club name GE Vernova . The Dow was performing better than the broader market, receiving a boost from UnitedHealth's best day in five years after Warren Buffett's Berkshire Hathaway revealed, in quarterly securities filings, a significant stake in the troubled insurer. "Big Short" investor Michael Burry and Appaloosa Management's David Tepper also disclosed sizable stakes in the embattled health insurer. 2. Consumers were feeling worse about the economy and future inflation in the early weeks of August, according to the University of Michigan's latest sentiment data. Consumers have taken the worst-case scenario about tariffs off the table, the survey director said. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future." The government released July retail sales before Friday's open, and the headline and ex-auto numbers matched expectations. 3. HSBC analysts downgraded their rating on Club name Cisco Systems to a hold from buy, with a $69 per share price target, following this week's earnings release. They think that a restocking benefit lifting the company's networking segment is almost over. HSBC also pointed out that Cisco's security business came in below expectations. We were also critical of that in our earnings analysis on Wednesday evening and during Thursday's monthly meeting . But the key, in our view on Cisco, is that the AI infrastructure business is getting traction. (Jim Cramer's Charitable Trust is long CSCO. See here for a full list of the stocks.) 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.