Latest news with #S&POscillator
CNBC
14-05-2025
- Business
- CNBC
Our newest stock gets a boost as we await Capital One's Discover deal to close
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 Wednesday's key moments. 1. The stock market was flat in morning trading after a strong start to the week ignited by the United States pausing its trade war with China and a new partnership with Saudi Arabia. "I think today could be a reversal day," said Jim Cramer, pointing there is nothing new for the market to run higher. The S & P Oscillator is still in overbought territory, meaning stocks may be due for a pullback. This is one of the reasons we trimmed our position in Wells Fargo , which is up roughly 8% this year. 2. The Club is looking forward to Capital One closing its deal with Discover , expected on May 19. According to Bloomberg, there are 16 buys, seven holds, and one sell on the stock by Street analysts. The 12-month price target consensus is about $213.59. The big number that a lot of analysts are using is $25 in EPS power in 2028, up from the $15.75 analysts expect it will earn in 2025. That's a 3-year compound annual growth rate (CAGR) of 16.65%, noted Jeff Marks, director of portfolio analysis for the Club. Jim said he's hopeful Capital One CEO Richard Fairbank can reinvigorate Discover Network, the global payments business. 3. GE Vernova , our latest addition to the portfolio, is up nearly 4% since the Club initiated a new position on Tuesday. Susquehanna analysts raised the company's price target by $100 to $499 following its $14.2 billion gas turbine and energy solutions deal with Saudi Arabia. Jim pointed out that instead of only buying planes, countries are also purchasing to bring their trade deficits with the U.S. down. There's also a need for energy infrastructure on a global scale, said Marks. For investors who didn't buy shares yesterday, "GE Vernova has to be bought on the way down," said Jim. 4 . Stocks covered in Wednesday's rapid fire at the end of the video were: Merck & Co ., Abbvie , American Eagle Outfitters, Nucor , and Advanced Micro Devices . (Jim Cramer's Charitable Trust is long COF, GEV, WFC. 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.
CNBC
09-05-2025
- Business
- CNBC
What TSMC's April chips sales tell us about Nvidia and the AI investment trade
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 S & P 500 was slightly lower on Friday. The muted action wraps up a week filled with major headlines: corporate earnings, Apple is exploring AI search and what that could mean for Google, a Federal Reserve meeting, a U.S. trade deal with the UK, and upcoming talks with China. Despite the flurry of news, the index ended the week pretty much at the same level as where it started, a sign that the market needed some time to digest its historic comeback over the past few weeks. We continue to point to the S & P Oscillator as the signal that indicated the recent rally was due for a pause. On the bright side, the market is going out the week less overbought than where it entered. TSMC's read-through to Nvidia : Shares of the world's largest semiconductor manufacturer Taiwan Semi were higher Friday after the company reported better-than-expected sales April sales — up 22.2% month over month and 48.1% year over year. These strong results suggest that the AI infrastructure ramp remains in full swing, though it's unclear if some of April's growth was driven by customers accelerating purchases to avoid tariffs or changes in trade policy. Taiwan Semi is Nvidia's primary chip supplier, so an increase in its sales is generally seen as a positive indicator for Nvidia as well. Nvidia traded lower on Friday, but is on pace for a positive week. On Friday, Reuters reported that Nvidia plans to release a downgraded version of its H20 AI chips for China in the next two months that are compliant with U.S. export restrictions. The stock probably isn't moving on this report because a similar story was reported by The Information last week. It also remains unclear how these dumb-downed chips for China stack up against local competition from Huawei, but our inclination is to say that customers will always take as many Nvidia chips as they can get. Other tariff and trade restrictions remain an overhang . A spokesperson for Nvidia declined to comment to the Club on the Reuters report. Next week : Earnings slow down next week with only about 9 companies in the S & P 500 scheduled to report and zero in the portfolio. The two most notable companies are Cisco and Walmart . Cisco's results will give us a view into the state of enterprise spending, while Walmart results will tell us how consumer spending is holding up. On the data side, it's inflation week with both the consumer price index (CPI) and producer price index (PPI) reports. We'll also see April retail sales and University of Michigan consumer sentiment and inflation expectations. (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. Nvidia CEO Jensen Huang speaks during the Hill & Valley Forum at the US Capitol Visitor Center Auditorium in Washington, DC, on April 30, 2025. 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.
CNBC
05-05-2025
- Business
- CNBC
Here's why we're not buyers in Monday's session, even as stocks move lower
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: Stocks started the day on a weak note, dropping roughly 0.75% in early trading. However, stocks began to recover as the session went on — first boosted by a stronger-than-expected April ISM Services Index, and later supported by remarks from Treasury Secretary Scott Bessent at the Milken Conference and during an appearance on CNBC. The S & P 500 was off by roughly 0.2% at midday. If the broad-market index closes negatively, it will mark its first loss in two weeks, ending a nine-day winning streak that drove it up by 10%. This rally has also pushed the market further into overbought territory, based on the S & P Oscillator . When the oscillator is this overbought, we're typically cautious about deploying new capital into the market, unless the stock in question has experienced an unwarranted, significant pullback. Sector breakdown : Performance was mixed today, with only a few sectors firmly in positive territory. Industrials led the way, with airlines in particular benefiting from falling oil prices. The other two sectors in the green were communication services and real estate. On the downside, energy was the worst performer as oil prices hit their lowest level of the year. Consumer discretionary also struggled, with Tesla , Starbucks , Chipotle , Nike , and Amazon among the notable laggards. Technology was a mixed picture. Software stocks were mostly positive with cybersecurity having a particularly strong day. Apple extended its post-earnings selloff from last Friday. Semiconductor stocks mostly declined, with On Semiconductor dropping roughly 8% after issuing mixed guidance —reflecting its exposure to automotive and industrial markets, unlike AI-focused peers such as Nvidia and Broadcom . Up next: Coming after the closing bell, Coterra Energy will report its first quarter of earnings. The conference call discussing the results will be held Tuesday. Other companies scheduled to report: Ford , Palantir , Vertex Pharmaceuticals , Mattel , Clorox , Diamondback Energy , and Hims & Hers . Before the opening bell on Tuesday, Marriott , Jacobs , Aramark , Marathon Petroleum , Kontoor Brands , Datadog , Zoetis , Ferrari , and Global Foundries will report earnings. (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. Traders work on the floor of the New York Stock Exchange on May 1, 2025. 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.
CNBC
30-04-2025
- Business
- CNBC
Nvidia is in a tough spot as CEO Huang warns of rising Chinese competition on AI
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. Markets: Stocks are lower on Wednesday, though they've recovered from their session lows. Disappointing corporate earnings and lackluster economic data are pressuring the S & P 500 , potentially ending its six-session winning streak. Given the overbought S & P Oscillator over the past three sessions, the market may have been due for a bit of breather or pullback. The weak economic data is helping traditional defensive stocks outperform, with sectors like consumer staples and health care trading higher. On the flip side, sectors with greater economic sensitivity like consumer discretionary and energy are weaker. Oil's drop below $60 per barrel puts the commodity on pace for its biggest percentage decline since November 2021. The next few days will be an important test for the market as we eagerly await the earnings of several Magnificent 7 members as well as potential news on trade deals and the all-important April non-farm payrolls report out Friday before the bell. Warning shot: Nvidia CEO Jensen Huang on Wednesday offered up some frank words about China's competitiveness in artificial intelligence, at a time of intense geopolitical pressure on the Club-owned chipmaker's business. Huang made the comment to media outlets, including CNBC , on Capitol Hill, and he'll be at the White House later Wednesday. Here's a transcript of what Huang had to say, with paraphrased questions in bold. Question: What is your reaction to a story about Chinese tech giant Huawei's efforts to launch a new AI chip that it hopes will exceed the performance of Nvidia's prior-generation H100? Huang: There's no question that Huawei is one of the most formidable technology companies in the world. They're incredible in computing. They're incredible in networking technology and software capabilities — all of the essential capabilities to advance AI, and they have. They've made enormous progress over the last several years. Whatever policy the administration puts together really should enable us to accelerate the development of AI, enable us to compete on a global stage. Question: How far behind do you think China is? Huang: China is not behind. Question: Are they ahead of you? Huang: China is right behind us. We're very, very close. Remember, this is a long-term, this is an infinite race. In the world of life, there's no two-minute end of the quarter. There's no such thing. We're going to compete for a long time. Just remember, this is a country with great will, and they have great technical capabilities. Fifty percent of the world's AI researchers are Chinese. So, this is an industry that we're going to have to compete for. What's our takeaway from these remarks? Nvidia finds itself in a tough spot in the game of geopolitics. The Biden administration curtailed Nvidia's ability to compete in China with various restrictions that limited the performance of AI chips it could send to customers in that market. While Nvidia developed throttled-back versions that ended up selling well in China, the Trump administration put tougher restrictions in this place this month, forcing Nvidia to book a $5.5 billion inventory charge for its made-for-China H20 chips on April 15. Another negative headline on this front arrived Tuesday, when Reuters reported that the Trump administration was weighing changes to a Biden directive — set to go into effect in May — that created global licensing requirements for AI chips, grouping countries into tiers to effectively determine how much computing power they could get. When they were announced in January, shortly before Biden left office, Jim blasted the "AI diffusion rules" as absurd. Among the changes being considered by the Trump White House, according to Reuters, is replacing the tiers with government-to-government agreements. "The diffusion rules as written were already non-ideal; such a change would be clearly worse," Bernstein analysts wrote in a note to clients Wednesday. Of course, this is a fluid situation — the Reuters story emphasized that nothing was set in stone — and the specific risks to Nvidia could change. Nevertheless, add it all up and the geopolitical landscape is exactly why Jim Cramer decided to book profits in the stock last week and recommended Club members do so even sooner . Having profits in hand makes handling all these fast-moving headlines a bit easier. Up next: We have a busy night of earnings ahead. Meta Platforms and Microsoft are scheduled to report along with Qualcomm , eBay , Robinhood , MGM Resorts , Align Technology , Public Storage , CH Robinson , KLA Corp , Tanger , Prudential , and many more. Thursday is a big day too. Eli Lilly and Linde will report their quarterly results along with McDonald's , CVS Health , Biogen , Harley-Davidson , Hershey , Shake Shack , Sirius XM , Intercontinental Exchange , Mastercard , Air Products , Estee Lauder , KKR , Cardinal Health , and more. On the data front, we'll see a job cuts report from recruiter Challenger, initial jobless claims, and April ISM manufacturing report. (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. Nvidia CEO Jensen Huang speaks during the Hill & Valley Forum at the US Capitol Visitor Center Auditorium in Washington, DC, on April 30, 2025. 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.
CNBC
28-04-2025
- Business
- CNBC
Our first move in this overbought market — plus Palo Alto makes a small buy
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: Stocks fell to start this busy week of corporate earnings and economic data. This comes after a roughly 4.5% rally in the S & P 500 last week that pushed the market to its highest levels since the tariffs announcement on April 2. The rally also pushed the S & P Oscillator into overbought territory with a reading of 5.22%. The last time the market was overbought was the end of January. Anything north of 4% suggests the market is overbought and could be vulnerable to some digestion or a pullback. It took about three weeks for the market to move from a historically oversold level to overbought . The Oscillator hit a low of minus 10.62% on April 8, the day before the Trump Administration announced a 90-day pause on its so-called reciprocal tariffs; anything below minus 4% indicates the market is oversold. We booked profits in CrowdStrike earlier Monday in keeping with our discipline to sell when the market is overbought. Palo Alto's small buy: Cybersecurity firm Palo Alto Networks on Monday announced it is acquiring Protect AI for undisclosed sum . According to the press release, Private AI is a leader in securing the use of AI and machine learning applications and models. In a note Wednesday, Truist characterized the deal "as positive as it bolsters PANW's security platform and accelerates its product roadmap in the nascent AI security space." Analysts at Cowen expressed a similar view. We don't have much more to add, other than CEO Nikesh Arora is no stranger to strategic acquisitions aimed at expanding the company's platform offerings. This latest deal follows that familiar playbook. Up next: It's the biggest week of first-quarter earnings season, with about one third of the S & P 500 scheduled to report. After the closing bell Monday, we'll see earnings from Cadence Design Systems , NXP Semiconductors , Nucor , and Waste Management . Companies reporting before the opening bell Tuesday include Honeywell , UPS , Pfizer , General Motors , Coca-Cola , Novartis , BP , AstraZeneca , PayPal , Sherwin-Williams , Spotify , Brinker , Royal Caribbean , Sofi , and Corning . On the data side, we'll see the Labor Department's closely watched Job Openings and Labor Turnover Survey. (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. Nikesh Arora, CEO of Palo Alto Networks and formerly SoftBank Group Corp. President and COO, speaks during the SoftBank Academia Special Lecture with Chairman and CEO Masayoshi Son in Tokyo on October 22, 2015. 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.
