Every weekday, the CNBC Investing Club releases Homestretch with Jim Cramer — an actionable afternoon update, coinciding with the final hour of trading on Wall Street. Thursday Markets: Stocks are taking a breather after Wednesday’s big gains, particularly in the Nasdaq Composite and the more narrow “Magnificent Seven” cohort. The yield on the benchmark 10-year Treasury note for November broke above 4.3% after a look at wholesale inflation, known as the producer price index. Even so, the market still largely expects the Federal Reserve to cut interest rates by a quarter percentage point at its policy meeting next week, bringing its target range to 4.25% to 4.5%. What happens in 2025 is still up for debate. We wouldn’t be surprised to see a “hawkish 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 at the New York Stock Exchange that President-elect Donald Trump rang the opening bell. Jim Cramer had the opportunity to interview Trump at the Exchange. Here’s a closer look at some of Trump’s comments on the stock market and key trends like artificial intelligence and rising demand for electricity. Bristol Dividend Increase: Bristol-Myers Squibb announced a 3.3 percent increase in its quarterly dividend late Wednesday, bringing its annual payout to $2.48. With its recent slide to around $56 per share, the stock now trades with a 4.4% dividend yield — and we’re eyeing the drugmaker’s next purchase, which we call its innovative schizophrenia treatment. like At around $56 and change, the stock is just over 4% above where it traded before AbbVie’s rival schizophrenia drug failed to meet its primary endpoint in a pair of mid-stage trials. Bristol-Myers stock rose from $54.14 to $59.82 on AbbVie’s Nov. 11 update, and the fact that it has given back more than half of those profits looks like an opportunity. It was a big moment for Bristol Myers because instead of looking like she has a big lead in schizophrenia, it looks like she might have that spot for a while – at least when it comes to treating the disease. For new methods. That’s a big, financially lucrative difference. Next: Two companies in the portfolio report earnings after Thursday’s closing bell: Costco and Broadcom. For Costco, sales figures already make sense because the company reports them every month. So we’ll focus more on membership fee growth and trends, and how the company is investing to keep costs down. For Broadcom, the three things we’re looking at are: (1) AI sales, both in custom chips and networking, (2) revival of its legacy semiconductor business, and (3) VMWare integration. Broadcom shares rose on Wednesday on a media report that said Apple is considering a partnership with Broadcom for a custom AI chip. But Broadcom shares gave back some of those gains on Thursday after Bloomberg reported that Apple plans to replace Broadcom’s Bluetooth and Wi-Fi chips with in-house components next year. This contrasts slightly with a Bloomberg story last Friday that reported Apple’s plan to replace Qualcomm’s modem system but continue its relationship. Could this be a situation where Broadcom loses its wireless partnership but gets a big AI win that could be more profitable 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 makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust 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 Investing Club information above is subject to our terms and conditions and privacy policy, along with our disclaimer. No formal obligation or duty exists, or is created, by reason of your receipt of any information provided in connection with Investing Club. No specific results or profits are guaranteed.
Every weekday, CNBC Investing Club releases Homestretch with Jim Cramer — an actionable afternoon update, timed to coincide with the final hour of trading on Wall Street.