Every weekday, CNBC’s Investing Club with Jim Cramer releases a hands-on update in the afternoon, just in time for the final hour of trading on Wall Street. More weakness: There were two attempts to rally on Wednesday, but shares are still mostly down in the second session of September after a rough start to the month on Tuesday. Nvidia is doing relatively well after falling 9.5% on Tuesday, though it was slightly lower in afternoon trading after trading in the green earlier. The stock has been lower in three of the past four sessions entering Wednesday. Elsewhere, we inaugurated a new position in home improvement retailer Home Depot, increasing our exposure to the beneficiaries of the Federal Reserve’s interest rate cuts. China in the spotlight: GE Healthcare kicked off back-to-back days of Wall Street action on Wednesday with a friendly chat with CFO Jay Saccaro at the Wells Fargo Healthcare conference. We’ve been focusing heavily on what Sakaro said about China after the company’s organic growth forecast was cut in July, which was driven entirely by weakness in the region and a lack of new government stimulus spending. As a reminder, GE Healthcare shares had already rallied on the disappointing news as some investors thought the new forecast had completely “de-risked” the region for the rest of the year. About a month later, there appears to be limited traction around the Chinese stimulus. “It’s progressing kind of as we expected. There’s been increasing interest in placing orders in what we call the pre-bid bucket. So we’re seeing that progress as we expected,” Sakaro explained. “But all of that has to come to fruition from pre-bid to bid to approval to order to sale. So it’s a bit of a drawn-out process. The big thing is that this is a longer process than the last stimulus.” Sakaro also spent some time discussing what could be a big opportunity for its radiopharmaceutical business due to proposed changes to imaging agent reimbursements by the Centers for Medicare & Medicaid Services. The company plans to talk more about this at its investor day in December. Overall, Sakaro’s comments haven’t changed our thinking about the stock. U.S. business is booming on strong procedure volume and strong hospital profitability, but uncertain developments in China are keeping us on our toes. Management is scheduled to speak Thursday after 1 p.m. ET at the Morgan Stanley Global Healthcare Conference. Shares of GE Healthcare rose more than 2% on Wednesday and are on track for their highest close since April. Next: After the closing bell on Wednesday, we’ll hear earnings from AeroVironment, Hewlett Packard Enterprise, Casey’s General Stores and C3.ai. On Thursday’s economic calendar, we’ll look at private payroll growth in the ADP monthly employment report and the ISM services index. (See here for a full list of stocks in Jim Cramer’s Charitable Trust.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll 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 foundation’s portfolio. If Jim speaks about a stock on CNBC TV, he waits 72 hours after sending a trade alert before executing a 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 duty is, or is created, by your receipt of any information provided in connection with the Investment Club. No specific result or profit is guaranteed.
Every weekday, CNBC's Investment Club with Jim Cramer releases a detailed update – an actionable afternoon update that comes just in time for the final hour of trading on Wall Street.
