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Stock futures are little changed as Wall Street looks to extend postelection rally: Live updates

Aseem — Fri, 08 Nov 2024 01:15:15 +0000

Traders work on the floor of the New York Stock Exchange during the morning trading on November 07, 2024 in New York City.

Michael M. Santiago | Getty Images

U.S. stock futures hovered near the flatline Thursday night after the S&P 500 and Nasdaq Composite hit records in a postelection rally and investors weighed the Federal Reserve’s latest interest rate cut.

S&P 500 futures and futures tied to the Dow Jones Industrial Average each added less than 0.1%. Nasdaq 100 futures were little changed.

During Thursday’s trading session, the broad market index gained 0.7% to close at a new record. The tech-heavy Nasdaq jumped 1.5% and ended the session above 19,000 for the first time. Meanwhile, the 30-stock Dow was marginally lower. The three major averages all hit intraday record highs during the session.

The moves higher continue the market rally from Wednesday in the wake of President-elect Donald Trump’s victory, during which the Dow and S&P 500 rose to their best days since November 2022.

Meanwhile, the Fed lowered interest rates by a quarter point, in-line with the market’s expectations. Fed Chair Jerome Powell noted he is “feeling good” about the economy during a press conference.

However, “the path of Fed cuts is cloudier today than it was a week ago before the election,” said Scott Helfstein, head of investment strategy at Global X ETFs.

Investors generally view a Republican-controlled government as more favorable on expectations for deregulation, the potential for more mergers and acquisitions and proposed tax cuts. However, concerns over the large federal deficit and increased tariffs have also sparked concerns of an uptick in inflation.

“The market is signaling that a Trump administration would be good for growth and risk assets, but the combination of faster growth with new tariffs would be inflationary,” he added. “While the Fed feels the risks are balanced between stable prices and maximum employment, this could shift quickly increasing the risk to reaccelerating inflation.”

The postelection surge put all three of the major averages are on pace for strong weekly gains, with the S&P 500 up about 4.3% and the Dow higher by nearly 4%. Both indexes are on track for their best week since November 2023. The Nasdaq is the outperformer of the three, toting a 5.6% advance through Thursday’s close.

Wall Street expects Trump presidency will unlock deal-making

suimt — Thu, 07 Nov 2024 17:43:11 +0000

Attendees cheer as a broadcast of former US President and Republican presidential candidate Donald Trum speaking at his Florida election party is shown on a screen at the Nevada GOP election watch party in Las Vegas, Nevada on November 6, 2024.

Ronda Churchill | Afp | Getty Images

Wall Street dealmakers and corporate leaders expect the flood gates to open on merger and acquisition activity after President-elect Donald Trump takes office in January.

And he’ll likely have congressional help. Trump defeated Democratic candidate Vice President Kamala Harris, and Republicans claimed a majority of the Senate in elections this week. That red wave is expected to spell loosening regulations on deal-making, with plenty of pent-up demand.

“We know kind of where the world is headed in a Trump environment because we’ve seen it before,” said Jeffrey Solomon, president of TD Cowen, on CNBC’s “Money Movers” Wednesday. “I think the regulatory environment will be much more conducive to economic growth. There will be lighter and targeted regulation.”

Solomon added that the scaled-back regulation will be focused on certain areas “of particular interest to the Trump administration,” rather than a broad based reassessment of the entire landscape.

In recent years, there has been greater scrutiny of pending deals by the Biden administration’s Department of Justice and Federal Trade Commission, headed by Chair Lina Khan. Some have pointed to that dynamic as a chilling factor on deal flow. High interest rates and soaring company valuations have contributed, too.

Khan said in September that “when you see greater scrutiny of mergers, you can see greater deterrence of illegal mergers.” Her hard line has drawn harsh criticism, but now, there’s optimism around a forthcoming FTC with a lighter hand.

“Assuming interest rates drop and you see corporate tax rates go down, the ingredients are there for a really active M&A market,” said one top dealmaker, who talked to CNBC on the condition of anonymity to speak candidly.

On Wednesday, markets rallied on the Republican presidential win, with the Dow Jones Industrial Average soaring 1,500 points to a new record high.

divest diagnostic test maker Grail after heated battles with the FTC and European antitrust regulators.

Also last year, the FTC blocked Sanofi’s proposed acquisition of a drug in development for Pompe disease, a genetic condition, from Maze Therapeutics. Sanofi ultimately terminated that deal.

“Whether or not Lina Khan is bounced day one is a key consideration, but even if fewer changes at the FTC take place, there is no doubt this administration — at least on paper — will be far more amicable when it comes to business combinations,” Jared Holz, Mizuho health-care equity strategist, said in an email on Wednesday.

One top dealmaker expected an M&A uptick broadly, but agreed that pharmaceuticals and the financial sector were particularly poised for a resurgence. That deal-maker also noted that with the Senate flipping, more outspoken antitrust voices like Sen. Elizabeth Warren, D-Mass., could find it more difficult to push for DOJ or FTC investigations.

In the financial sector regional banks recognize the need for scale, making them likely candidates for consolidation, said one former industry executive, noting that smaller banks had been getting gobbled up for “some time.” That person expects the pace and size of those acquisitions to ramp up under a Trump presidency.

Other industries, such as tech, may still face an uphill battle in getting deals done.

One M&A advisor, who also spoke to CNBC anonymously, noted that Trump’s disdain for Big Tech companies — historically active deal-makers — might keep them on the sidelines. On Wednesday, tech leaders took to social media to congratulate Trump.

Apparent GOP opposition to the CHIPS Act means that semiconductor consolidation might be challenging, the advisor noted, while cautioning it is still too early to know what a Trump presidency would mean. CNBC previously reported that Qualcomm recently approached Intel about a potential takeover.

“I think the simplest way to put it is more deals, less regulation with the administration having its thumb on the scale, perhaps with a willingness to pick winners and losers,” said Jonathan Miller, chief executive of Integrated Media, which specializes in digital media investments.

Kroger’s bid to take over grocery chain Albertsons could have a better chance of getting approved under Trump, as could Tapestry’s proposed acquisition of Capri.

The merger between Kroger and Albertsons is currently under review by a federal judge, while Tapestry is working to appeal a federal order that granted the FTC’s motion for a preliminary injunction against the tie-up.

“The hostile approach of the FTC to mergers and acquisitions will almost certainly be reset and replaced with a worldview that is more favorable to corporate dealmaking,” said GlobalData managing director Neil Saunders. “This does not necessarily mean that big deals like Kroger-Albertsons will be waved through, but it does mean others like Tapestry-Capri will receive a far warmer reception than they have under the Biden administration.”

Meanwhile, ongoing turmoil in the media industry has led many to consider consolidation as the next step for the sector.

Warner Bros. Discovery CEO David Zaslav on Thursday highlighted opportunities that could come up if regulations were to loosen, doubling down on comments he made earlier this year at Allen & Co.’s annual Sun Valley conference.

“We have an upcoming new administration. … It’s too early to tell, but it may offer a pace of change and opportunity for consolidation that may be quite different, that would provide a real positive and accelerated impact on this industry that’s needed,” Zaslav said on an earnings call.

Broadcast station group owner Sinclair on Wednesday echoed a similar sentiment.

“We’re very excited about the upcoming regulatory environment,” CEO Chris Ripley said during an earnings call. “It does feel like a cloud over the industry is lifting here.”

Still, the track record between the previous Trump administration and the Biden administration for media industry deals is split.

Trump’s DOJ allowed Disney to buy Fox’s assets, but then sued to block AT&T’s deal for Time Warner.

Under the Biden administration, Amazon’s $8.5 billion deal for MGM and the merger of Warner Bros. and Discovery Communications were both waved through, but a federal judge blocked the $2.2 billion sale of Simon & Schuster to Penguin Random House.

Skydance Media and Paramount Global agreed to merge earlier this year and expect to receive regulatory approval in 2025.

Palo Alto shares helped by contract news, Abbott Labs braces for lawsuit ruling

Harsh — Thu, 31 Oct 2024 18:50:48 +0000

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: Wall Street is under pressure Thursday, led to the downside by the tech-heavy Nasdaq Composite , which dropped more than 2%. The S & P 500 is down more than 1%, while the Dow Jones Industrial Average lost about 260 points, or 0.6%. Selling in Microsoft and Meta Platforms following their Wednesday evening earnings results weighed on the Nasdaq and S & P 500. Also adding to the weakness: The yield on the closely watched 10-year Treasury note continued its climb higher, topping 4.3% at one point in the session. Investors are gearing up for Friday morning’s nonfarm payrolls report, which is expected to show the U.S. economy added 100,000 jobs in October while the unemployment rate remain unchanged at 4.1%. But many expect noise in the numbers due to the impact of the recent hurricanes and Boeing strike. The data will help shape Wall Street’s expectations around the path of Federal Reserve policy. Currently, traders are pricing in a roughly 95% chance of a quarter-point interest rate cut at the central bank’s meeting next week. Earlier Thursday, the Fed’s favorite inflation gauge, the PCE price index, matched expectations, rising 2.1% in September . Cyber deal: Morgan Stanley put out a note Thursday morning on Club holding Palo Alto Networks that caught our eye, discussing reports of the cybersecurity leader landing a five-year, roughly $1 billion software licensing agreement with the Department of Defense. An executive at Palo Alto Networks also posted about it on LinkedIn , without mentioning the dollar amount and duration. “While timing of bookings or revenue recognition isn’t clear yet, we think this could provide multi-year tailwinds,” Morgan Stanley analysts wrote to clients. These headlines could be helping support shares of Palo Alto in Thursday’s down market. The stock rotated between slight gains and losses, holding up much better than an exchange-traded fund that tracks the cybersecurity industry , which dropped more than 1% in the session. Shares of our other cyber holding, CrowdStrike , were down nearly 4% Thursday. To be sure, Morgan Stanley sought to temper expectations on the reported Palo Alto deal. The firm noted, for example, that the contract was awarded through software reseller Carahsoft, which means it “likely includes ~15% reseller margin for Carahsoft.” Nevertheless, analysts said they “think this contract award … suggests the large but elusive DoD opportunity could finally be coming into fruition.” Palo Alto did not respond to CNBC’s request for comment on the licensing agreement. The company experienced some softness in its federal government business earlier this year and also tamped down expectations about the next few quarters, which added to the messiness in its February earnings report. More recently, on an August earnings call, Palo Alto CEO Nikesh Arora said the company continued to have “a muted set of expectations” around its federal government business due to the election. Trial decision looms: We’re bracing ourselves for a verdict soon in Abbott Labs ‘ latest trial over allegations that its specialized premature infant formula causes an intestinal illness commonly abbreviated as NEC. The company has strongly denied the claims, and recently received the backing of major U.S. health agencies, which in a statement earlier this month came out in support of using the formulas like Abbott’s to treat premature infants. “There is no conclusive evidence that preterm infant formula causes NEC,” the agencies wrote. However, the judge in Abbott’s trial — held in the 22nd Judicial Circuit of Missouri — did not allow that statement to be shown to jurors in the case . For that reason, we’re not expecting the Club holding to receive a favorable verdict. A loss in the case could ding the stock, but that could represent a buying opportunity, according to Director of Portfolio Analysis Jeff Marks. The reason is that while Abbott faces additional lawsuits over its formula, we expect the statement from U.S. health agencies will be allowed as evidence in future cases. Up next: Apple , Amazon and Coterra Energy are set to report quarterly results after the closing bell Thursday. Outside the portfolio, we’ll also hear from Intel , U.S. Steel and Juniper Networks . As mentioned, the big event Friday is the October nonfarm payrolls report. Chevron , Exxon Mobil and chemical maker LyondellBasell Industries are among the notable earnings reports Friday. (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.

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.

Stock futures rise with Nasdaq set to add to records as oil prices decline

Aseem — Mon, 28 Oct 2024 05:08:59 +0000

Traders work on the New York Stock Exchange floor on Oct. 16, 2024.

Spencer Platt | Getty Images

U.S. equity futures jumped on Monday morning as investors looked for a batch of megacap technology earnings to keep driving the Nasdaq Composite to new heights this week. A cooling geopolitical situation also aided risk sentiment.

Weekend airstrikes by Israel against Iran did not target oil or nuclear facilities as was feared and oil futures were lower in early trading.

Futures tied to the Dow Jones Industrial Average added 179 points, or 0.42%. S&P 500 futures gained 0.53% and Nasdaq 100 futures increased by 0.73%.

The market was split at the end of last week. On Friday the tech-heavy Nasdaq Composite jumped to a new intraday all-time high, rising 0.56% to close at 18,518.61. On the flip side, the Dow shed 259.96 points, or 0.61%, to close at 42,114.40. The broad-market S&P 500 inched lower by 0.03% to 5,808.12.

Both the Dow and S&P snapped a six-week winning streak, but the Nasdaq eked out its seventh positive week in a row.

Wall Street is bracing for a big week in markets that will mark busiest week of third-quarter earnings reporting season and the final week before the Nov. 5 U.S. Presidential election. Five of the Magnificent Seven companies – Alphabet, Microsoft, Meta Platforms, Amazon and Apple – are scheduled to report third-quarter earnings.

“One thing we expect to see play out is these megacap tech names continuing to reinforce commitment to AI in tech spending broadly,” Yung-Yu Ma chief investment officer at BMO Wealth Management, told CNBC. “I don’t think there’s going to be any backing away from that.”

Nasdaq Composite, YTD

“If for some reason we don’t get that – if a few of those tech companies reporting talk about say tapping on the brakes a little bit in some of these investments – the market would not take that well,” he added. “So that’s going to be somewhat impactful, for the market to actually hear that these companies are continuing their commitment to spending in this area, if not accelerating.”

Traders are also watching for a slew of key economic data this week, including the September jobs report due Friday; the September personal consumption expenditures, or PCE, price index, expected Thursday; and a preliminary reading on third-quarter gross domestic product out on Wednesday.

S&P 500 rises to end three-day losing run, lifted by surge in Tesla: Live updates

Aseem — Thu, 24 Oct 2024 21:24:28 +0000

Traders work on the floor of the New York Stock Exchange during morning trading on Oct. 8, 2024.

Michael M. Santiago | Getty Images

The S&P 500 bounced back on Thursday, posting its first positive day in a week that has been beset by higher rates.

The S&P 500 added 0.21% to 5,809.86 and snapped a three-day run of losses. The Nasdaq Composite jumped 0.76% and closed at 18,415.49. The Dow Jones Industrial Average lost 140.59 points, or 0.33%, to end at 42,374.36. The blue-chip index notched a four-day losing streak, its first since June.

Tesla was the best-performing stock in the broad market index. The electric vehicle manufacturer surged nearly 22% after posting third-quarter results that beat analysts’ expectations, registering its best day since 2013. Molina Healthcare gained 17.7% on better-than-expected earnings and revenue. Whirlpool and UPS also jumped after posting results.

Dragging the Dow was IBM, which fell more than 6% as the company’s consulting revenue narrowly missed analysts’ estimates. Boeing slipped 1.2% after its machinists rejected a new labor contract.

Roughly 160 S&P 500 companies have posted quarterly results so far, but their earnings growth has been underwhelming. The blended growth rate, which tracks reports that have already come out and estimates for those set to report, indicates an overall S&P 500 earnings growth rate of 3.4% from the year-earlier period, according to FactSet. That result came up short of analysts’ projections.

Treasury yields moved lower, easing from three-month highs reached in the previous session. The 10-year Treasury yield topped the 4.25% threshold on Wednesday at the high of the session.

“The pressure on the market has been from the rate side,” said Rob Haworth, senior investment strategist at U.S. Bank Asset Management. “That’s really what has dampened equity market enthusiasm, and you haven’t had big enough earnings news yet to drive the market to a new high … we’re also not seeing as broad a momentum as we were seeing.”

Stocks are coming off a losing session, with the Dow suffering its biggest one-day drop since early December, falling more than 400 points on Wednesday. The S&P 500 shed nearly 1% and the Nasdaq lost 1.6%.

Asia markets lower after major U.S. indexes slip; Hyundai Motor India shares drop on trading debut

Aseem — Tue, 22 Oct 2024 06:38:49 +0000

A bronze bull statue outside the Bombay Stock Exchange (BSE) building in Mumbai, India, on Monday, June 3, 2024. India’s stock futures jumped after exit polls indicated a resounding victory for Prime Minister Narendra Modi’s ruling party in general elections that concluded Saturday. Photographer: Dhiraj Singh/Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

Asia-Pacific markets slipped on Tuesday, trailing a mixed session on Wall Street.

Investors saw a light day in terms of economic data out of Asian countries. Meanwhile, Hyundai Motor India made its trading debut after a record IPO.

Shares were trading down at 1,860 rupees from their initial public offering price of 1,960 rupees, according to BSE data. The automaker had offered 142.19 million shares at a price band of 1,865 Indian rupees ($22.18) to 1,960 rupees. The IPO fetched 278.56 billion rupees, or $3.3 billion.

Australia’s S&P/ASX 200 was down 1.66% to close at 8,205.7, its lowest level in almost 2 weeks, while South Korea’s Kospi slipped 1.28% and its small cap Kosdaq lost 2.68%.

Japan’s benchmark Nikkei 225 fell 1.39% to 38,411.96, while the broad based Topix was trading down 1.06% at 2,651.47.

Hong Kong’s Hang Seng index was close to the flatline, while the mainland Chinese CSI 300 inched down 0.21%.

During the U.S. trading session, two Federal Reserve officials had spoken about the trajectory of interest rates.

Minneapolis Fed President Neel Kashkari, noting the U.S.’ resilient economy and strong labor market, said the longer term trajectory for interest rates could be higher than it has in the past.

Dallas Federal Reserve President Lorie Logan said she supports the current move to lowering interest rates, but that a patient approach will be needed.

Overnight in the U.S., stocks ended mixed as Treasury yields rose and investors awaited new earnings reports.

The S&P 500 slipped 0.18% and the 30-stock Dow lost 0.8%, and snapped a three-day run of winning sessions. The Nasdaq Composite was the outlier, rising 0.27%.

— CNBC’s Pia Singh and Sarah Min contributed to this report.

Dow drops more than 350 points as Wall Street's rally takes a breather: Live updates

Aseem — Mon, 21 Oct 2024 19:32:50 +0000

A trader works on the floor of the New York Stock Exchange.

NYSE

The Dow Jones Industrial Average fell Monday, giving back some of the strong gains from last week, as Treasury yields rose and investors awaited new earnings reports.

The S&P 500 slipped 0.3%, while the Dow Jones Industrial Average lost 330 points, or about 0.8%. The Nasdaq Composite hovered just above the flatline.

Consumer and homebuilder stocks were among the biggest losers as fears about higher-for-longer interest rates crept up, with Target and Builders FirstSource each down more than 4%. Lennar also shed more than 3.5%.

The yield on the 10-year Treasury jumped, rising more than 10 basis points to 4.178%.

“Bond yields continue to back up, which implies to me that investors are now thinking that the Fed will be slower to lower interest rates because the economy remains resilient,” CFRA chief investment strategist Sam Stovall said. “As a result, the Fed will likely have a harder time pushing the inflation rate down to its target 2% level in the next year or so.”

Earnings will be key this week with roughly one-fifth of the S&P 500 set to report. Among the companies on deck are Tesla, Coca-Cola and GE Aerospace.

Thus far, the results have been mixed. Of the 14% of S&P 500 companies that have already posted third-quarter results, 79% have beaten expectations, according to FactSet’s John Butters. Analysts have significantly downgraded their earnings expectations for the quarter in recent months.

“I don’t think that we are in the beginnings of an earnings recession or anything like that, but the bar has been set very, very low … rarely does anybody injure themselves falling out of a basement window,” Stovall said. “So with earnings this low, chances are that this will be the 60th quarter out of the past 62 in which actual results exceed end-of-quarter estimates.”

Still, investors are largely optimistic equities still have further room to run, but they are mindful that stretched valuations, particularly ahead of the U.S. presidential election and amid rising geopolitical risks, could also mean further choppiness.

Monday’s moves come after both the S&P 500 and 30-stock Dow registered all-time highs on Friday, cementing a sixth straight weekly advance for both benchmarks.

Mainland China markets open sharply higher, extending stimulus rally after weeklong break; Hong Kong plunges

Aseem — Tue, 08 Oct 2024 02:18:45 +0000

A customer watches stock market at a stock exchange in Hangzhou, China, on September 27, 2024.

Costfoto | Nurphoto | Getty Images

SINGAPORE — Chinese markets skyrocketed over 10% at the open Tuesday, after coming back from the Golden Week holiday as the rally from Beijing’s stimulus measures continued.

The CSI 300 index was up 10.2% in early deals, before paring some gains to record a rise of about 7.5%, but Hong Kong’s Hang Seng index plummeted over 6%.

Other Asia-Pacific markets mostly fell on Tuesday, with investors watching August pay and spending data out from Japan.

Household spending in Japan fell 1.9% year-on-year in August in real terms, a softer fall compared to the 2.6% decline expected by a Reuters poll of economists.

The drop is the fastest pace of decline since January, which saw a 6.3% fall year-on-year. That decline also came before spring wage negotiations delivered the largest pay hikes to unionized Japanese workers in 33 years.

However, real wages rose in August, with data from the country’s statistics bureau indicating that wages climbed 2% to an average of 574,334 yen ($3,877.44).

Overnight in the U.S., stocks slid as rising oil prices and higher Treasury yields weighed on market sentiment.

The Dow Jones Industrial Average dropped 0.94%, while the S&P 500 slid 0.96%. The Nasdaq Composite saw the largest loss, falling 1.18%.

The benchmark 10-year Treasury yield rose to 4.02%, marking the first time since August that the yield topped 4%.

Oil prices also rose as tensions in the Middle East remain high. U.S. crude climbed more than 3% to settle above $77 per barrel.

— CNBC’s Lisa Kailai Han and Jesse Pound contributed to this report.

Why Eli Lilly and Palo Alto Networks are both up on news from their competitors

Harsh — Fri, 20 Sep 2024 18:14:26 +0000

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: The Dow and S & P 500 were lower Friday after surging to record highs Thursday in response to the Fed cutting interest rates by 50 basis points. It’s been a strong week for stocks with the S & P 500 gaining roughly 1.5%. The top performing sectors week to date were energy, communication services, financials and industrials. Only three sectors were on pace for a down week: real estate, consumer staples, and health care. Obesity drugs: New information often sends one company’s stock higher and causes its biggest competitor to fall. Take a look at shares of Club name Eli Lilly . They were trading higher in a soft market after a key competitor in the obesity space reported disappointing Phase 2 trial results. That competitor, Novo Nordisk , said Friday its medicine monlunabant, which is a small molecule oral cannabinoid receptor (CB1) inverse agonist, showed weight loss of about 6% at 16 weeks. This was a big disappointment. The results fell short of Lilly’s lead daily oral GLP-1 orforglipron, which has showed about 8% weight loss in 16 weeks and was well below what Novo previously suggested. Analysts at Deutsche Bank called the trial results underwhelming, adding it “removes the threat of a large well-capitalized, small-molecule competitor to LLY’s orforglipron.” Competition in the obesity space is going to heat up over the next few years, but this disappointment from Novo Nordisk shows how hard it is to make a safe and effective drug. That’s why we’ve long disagreed with the selling of Eli Lilly when a competitor puts out a press release of an early-stage trial. Some medicines will work, some won’t. Some will be highly effective, others won’t move the needle. Some will have safety and tolerability issues. This is the nature of the business. But what we know now is that Eli Lilly’s leadership isn’t going away any time soon thanks to its current lineup of obesity medications, robust pipeline, and massive manufacturing scale. Cybersecurity stocks: In other scenarios, both a company and its competitor can trade up on new news. CrowdStrike shares were on the move higher after the cybersecurity company hosted its annual conference. One of the key revelations from the event was the very little customer churn in the aftermath of the global IT outage it caused in July. Recall, that we initially had a view that competitors like Club name Palo Alto Networks would take advantage of this event to pitch their products. However, we can’t say we are completely surprised to see very few customers leave CrowdStrike. When we looked at Palo Alto’s quarter in August, the results didn’t show a huge swing in market share resulting from the outage. Sure the quarter was good because Palo Alto has a great product and value proposition, but it didn’t suggest a massive departure from CrowdStrike. Both companies are great. So why aren’t Palo Alto shares lower? CrowdStrike’s commentary likely indicated that spending on cybersecurity is still healthy, which benefits both companies. Up next: We’ll see a pickup in earnings next week. Some of the notable reports are from KB Home , which will provide insight into housing, and Micron , which will give us a good look of demand and inventory levels for high bandwidth memory (which feeds into AI chips) as well as cellphones and personal computers. Jefferies , which is always a good preview into the banks, and Club name Costco , which is a good read on consumer spending, are also out next week. (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.

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.