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. Market update: Stocks are lower on Tuesday afternoon, but off their worst levels of the session. The market started the day on a higher note, buoyed by strength in the semiconductor sector and shrugging off a rare downgrade to sell of Apple . But things turned lower right at 10 a.m. ET when interest rates soared after a string of better-than-expected economic data. What the market keyed on was the higher-than-expected JOLTS job openings report (which measures demand for workers) and the stronger-than-expected ISM Services Index, especially on prices paid. The data caught the market by surprise because economic releases had been surprising to the downside, as indicated by the Citi U.S. Economic Surprise Index. For the moment, we may be in good economic news is bad news for stocks. The 10-year yield spiked more than 7 basis points to around 4.69% as traders pushed out their bets for interest rate cuts this year and the market digested a $39 billion auction of 10-year bonds. Sector moves: Tuesday is a little contrary to some of the recent market trends. The energy sector is leading the market thanks to oil notching slight gains. Healthcare, which had been under pressure over the past three months, is having a strong day despite no real industry catalyst. All five healthcare stocks in the portfolio — Abbott Labs , Bristol-Myers Squibb , Danaher , GE Healthcare , and Eli Lilly — are up so far in 2025 after disappointing ends to 2024. On the other side, many red hot momentum stocks like MicroStrategy , Applovin , and Palantir gave back recent gains. Nvidia reversed after briefly hitting an all-time high, but we don’t see the decline as a sign of disappointment in CEO Jensen Huang’s keynote at CES or negativity around physical AI. Consumer discretionary stocks were weaker too, led lower by the auto stocks and travel and leisure names. Up next: There are no major earnings Tuesday after the closing bell. Albertsons reports Wednesday before the opening bell. On the economy, we’ll get another two labor-related data points when December ADP and the weekly initial jobless claims are reported. At 1 p.m. ET, we’ll have our eyes on another Treasury auction. This time it is $22 billion of 30-year bonds. (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.
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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.
