Each weekday, CNBC Investing Club with Jim Cramer publishes the Homestretch – an actionable afternoon update, just in time for the final hour of trading on Wall Street. Markets Fall: Wall Street struggled to hold on to its early gains and slipped. We're not surprised to see the market taking a breather after its run of the past two weeks and overbought conditions. The technology sector started the session strong but later fell as semiconductor stocks fell. We can't find a specific trigger for the decline – perhaps it was disappointment over Snowflake's quarter or the small increase in sales from chip designer Synopsys. But some of these stocks have been up sharply since the yen carry trade burst earlier this month, and there could be some profit-taking. The problems: “We're starting to get into the details of the Democrats' platform, and there do seem to be some villains, namely the pharmaceutical companies with their pricing and the supermarkets' gouging,” Jim Cramer said Thursday. “It's actually important that the banks aren't castigated, and that may explain some of the positive developments in the banks.” Thursday is the final night of the Democratic National Convention, and Vice President Kamala Harris will accept her party's nomination for president. Medical devices: “The medical device sector is doing better because nobody is targeting them. Abbott Laboratories continues to do well in the device trade.” Citi raised its price target on Abbott, calling it a favorite in the medical device sector. We trimmed our position a bit on Tuesday due to concerns about diabetes device makers in response to fellow club Eli Lilly's new study of obesity drug Zepbound. There's also the legal overhang from lawsuits over specialty baby formula. Real estate trading: “We have a four-month inventory of unsold homes. I've always thought six months is the tipping point and we haven't hit it yet, hence the strength in homebuilders,” Cramer said. “But I'm worried about Best Buy given Williams-Sonoma's weakness in the furniture space.” Williams-Sonoma's disappointing comparable-store sales numbers follow some disappointing comparables from club-name TJX's HomeGoods and lackluster sales at Home Depot and Lowe's. Expensive, home-related items are having a tough time this earnings season. Of course, lower mortgage rates due to Fed rate cuts could change that outlook in the coming quarters. Best Buy reports earnings next week and we're considering taking some profits ahead of the report. Earnings forecast: “Gap Stores rang the opening bell and I think we could be on the cusp of a multi-year move and I could be pushing for this one to go into the bullpen,” Cramer said. We'll be keeping an eye on Gap's earnings next week. After the market closes, we'll see earnings from growing restaurant chain Cava, some software stocks from Workday and Intuit, and off-price retailer Ross Stores. Jackson Hole: The main event on Friday isn't economic data or corporate earnings – it's Federal Reserve Chairman Jerome Powell's speech at the Fed's annual meeting in Jackson Hole, Wyoming. Powell could give us clarity on whether the Fed is leaning toward a quarter-point or half-point rate cut at its September meeting. Any indication of how many cuts Fed officials expect by the end of the year would also be welcome. Ahead of the speech, the market is pricing in 1 percentage point, or 100 basis point, cuts this year, according to the CME FedWatch tool. (A complete list of stocks in Jim Cramer's Charitable Trust can be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. After sending a trade alert, Jim will wait 45 minutes before buying or selling a stock from his charitable foundation's portfolio. If Jim has discussed a stock on CNBC, he will wait 72 hours after the trade alert is issued before executing the trade. THE INFORMATION REGARDING INVESTING CLUB PROVIDED ABOVE IS SUBJECT TO OUR TERMS OF SERVICE AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR OBLIGATION EXISTS OR IS CREATED BY OR AS A RESULT OF RECEIVING INFORMATION RELATED TO INVESTING CLUB. NO PARTICULAR RESULT OR PROFIT IS GUARANTEED.
Every weekday, CNBC Investing Club with Jim Cramer publishes the Homestretch – an actionable afternoon update, just in time for the final hour of trading on Wall Street.
