Every weekday, the CNBC Investing Club with Jim Cramer releases Homestretch — an actionable afternoon update, just in time for the final hour of trading on Wall Street. Thursday Markets: Stocks are taking a breath after Wednesday's big rally, especially in the Nasdaq Composite and the narrower “Magnificent Seven” group. The yield on the benchmark 10-year Treasury note rose above 4.3% after a look at November's wholesale inflation, known as the producer price index, which came in on the slightly hotter side. However, the market still overwhelmingly expects the Fed to cut interest rates by a quarter of a percentage point at next week's policy meeting, which would raise its target range to 4.25% to 4.5%. But what will happen in 2025 remains up for debate. We wouldn't be surprised to see a “tight cut” next week, with the Fed continuing its message that it is in no rush to cut interest rates. Separately, it was a historic day on the New York Stock Exchange as President-elect Donald Trump rang the opening bell. Jim Cramer had the opportunity to interview Trump on the exchange floor. Here's a closer look at some of Trump's comments about the stock market and important trends like artificial intelligence and the growing demand for electricity. BRISTOL DIVIDEND INCREASE: Bristol-Myers Squibb late Wednesday reported a 3.3% increase in its quarterly dividend, bringing its annual dividend to $2.48. With its recent decline to around $56 per share, the stock now trades at a bumper 4.4% dividend yield — and we're looking forward to our next buy for the pharmaceutical company, which we love for its innovative treatment for schizophrenia. At about $56 and change, the stock is only 4% higher than where it traded before AbbVie's rival schizophrenia drug failed to reach its primary endpoint in a pair of mid-stage trials. Bristol Myers stock jumped from $54.14 to $59.82 in AbbVie's Nov. 11 update, and the fact that it has clawed back more than half of those gains looks like an opportunity. It was a big moment for Bristol-Myers because instead of looking like it had made a breakthrough in schizophrenia, it looked like it might have that space to itself for a while — at least when it comes to new approaches to treating the disease. This is a huge difference and financially profitable. Next: Two companies in the portfolio report earnings after the closing bell on Thursday: Costco and Broadcom. For Costco, the sales numbers are already understood as the company reports them every month. That's why we'll focus more on membership fee growth and trends, and how the company is investing to keep prices low. For Broadcom, the three things we're watching are: (1) AI sales, both custom chips and networking, (2) the recovery of its legacy semiconductor business, and (3) VMWare integration. Broadcom shares rose on Wednesday after a media report said Apple was considering partnering with Broadcom for a custom artificial intelligence chip. But Broadcom shares gave up some of those gains on Thursday after Bloomberg reported that Apple plans to replace Broadcom's Bluetooth and Wi-Fi chips next year with an in-house component. This somewhat contradicts a Bloomberg story last Friday that reported Apple's plan to discontinue Qualcomm's modem system while continuing its relationship. Could this be a situation where Broadcom loses its wireless partnership but gets a big AI win that could prove more lucrative over time? Time will tell. (See here for a complete list of stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you'll receive a trade alert before Jim takes a trade. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charitable fund's portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the 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 exists or is created by your receipt of any information provided in connection with the Investment Club. No specific results or profits are guaranteed.
Every weekday, the CNBC Investing Club with Jim Cramer releases Homestretch — an actionable afternoon update, just in time for the final hour of trading on Wall Street.
