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Every weekday, the CNBC Investing Club releases the Homestretch with Jim Cramer – an afternoon update action, just in time for the final hour of trading on Wall Street. Thursday Markets: Stocks are catching a breather after Wednesday’s big rally, especially in the Nasdaq Composite and the narrower “Magnificent Seven” cohort. The yield on the benchmark 10-year Treasury note broke above 4.3% after November’s look at wholesale inflation, known as the producer price index, came in slightly warmer. However, the market still fully expects the Federal Reserve to cut interest rates by a quarter of a percentage point at its policy meeting next week, which would move its target to 4.5% from 4.25%. What will happen in 2025 is up for debate, though. We wouldn’t be surprised to see a “cut in the black” next week, following messages that the Fed is in no rush to cut interest rates. Separately, it was a historic day at the New York Stock Exchange, when President-elect Donald Trump rang the opening bell. Jim Cramer in return had the opportunity to interview Trump on the floor. Here are some of Trump’s comments about the stock market and important trends such as artificial intelligence and growing demand for electricity. Bristol’s dividend boost: Bristol Myers Squib announced a 3.3% increase in its quarterly dividend late Wednesday, bringing its annual payout to $2.48. With a recent drop to around $56 per share, the stock is trading with a healthy dividend yield of 4.4% and we’re looking at the next buy of the drugmaker, which we like for its innovative treatment for schizophrenia. At around $56 and change, the stock is only about 4% off where it was selling before AbbVie’s rival schizophrenia drug met its primary endpoint in a pair of mid-stage trials. Bristol Myers shares went from $54.14 to $59.82 in AbbVie’s Nov. 11 update, and giving back more than half of those gains looks like a possibility. It was a huge moment for Bristol Myers, because despite his apparent breakthrough in schizophrenia, it looks like he may have that space to himself for a while, at least when it comes to new approaches to treating the disease. That’s the big difference, the financial gain. Next: Two portfolio companies report earnings after Thursday’s close: Costco and Broadcom. For Costco, the sales figures are already understood because the company provides them every month. That’s why we’ll focus more on membership fee growth and trends, and how the company invests to keep prices down. For Broadcom, the three things we’re looking at are (1) AI sales, custom chips and networking, (2) recovery of its legacy semiconductor business, and (3) VMWare integration. Shares of Broadcom rose on Wednesday on reports that Apple is considering a partnership with Broadcom for a custom AI chip. But Broadcom shares gave back some of those gains on Thursday, when Bloomberg reported that Apple plans to swap Broadcom’s Bluetooth and Wi-Fi chips for an in-house component next year. This is somewhat contradictory to last Friday’s Bloomberg story that reported Apple’s plan to replace Qualcomm’s modem system but continue its relationship. Could this be Broadcom losing the wireless partnership but getting a big AI win that could become more profitable over time? Time will tell. (See a full list of Jim Cramer’s Charitable Trust stocks here.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim trades. Jim will wait 45 minutes after sending a trade alert before buying or selling a share in his charitable trust portfolio. If Jim has talked about a stock on CNBC TV, he will wait 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS PURSUANT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, SUBJECT TO OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR OBLIGATION IS CREATED, OR CREATED, FOR ANY INFORMATION ENTERED INTO WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Every weekday, the CNBC Investing Club releases the Homestretch with Jim Cramer – an afternoon update action, just in time for the final hour of trading on Wall Street.
