We want to enhance our holding in a portfolio inventory whose dividend has simply elevated
Every weekday, CNBC Investing Club with Jim Cramer publishes Homestretch – an actionable afternoon update just in time for the final hour of trading on Wall Street. Thursday Markets: Stocks are taking a breather after Wednesday's big rise, particularly 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 wholesale inflation for November, known as the producer price index, came in slightly higher. However, the market still largely expects the Federal Reserve to cut interest rates by a quarter of a percentage point at its policy meeting next week, which would increase its target range to 4.25% to 4.5%. However, what happens in 2025 is still up for debate. We wouldn't be surprised to see a “hawkish rate cut” next week, with the Fed continuing its message that it is in no rush to cut rates. Regardless, 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 site. Here's a closer look at some of Trump's comments on the stock market and key trends like artificial intelligence and growing electricity demand. Bristol Dividend Increase: Bristol Myers Squib late Wednesday announced a 3.3% increase in its quarterly dividend, bringing its annual payout to $2.48. After the recent decline to around $56 per share, the stock now trades with a generous 4.4% dividend yield – and we're eyeing our next buy in the drugmaker, which we like for its innovative schizophrenia treatment. At around $56 (plus change), the stock is only about 4% above where it was before AbbVie's competing schizophrenia drug failed to meet its primary endpoint in two mid-stage trials. Bristol Myers stock rose from $54.14 to $59.82 in AbbVie's Nov. 11 update, and the fact that it gave back more than half of those gains seems like an opportunity. It was a big moment for Bristol Myers because, rather than looking like it has a big lead in schizophrenia, it seems like it could keep that space to itself for a while – at least when it comes to new approaches to it Treatment of the disease is possible. That's a big, financially lucrative difference. Next up: Two companies in the portfolio report earnings after Thursday's closing bell: Costco and Broadcom. For Costco, sales numbers are already known because the company reports them every month. For this reason, we will focus more on membership fee growth and trends and how the company is investing to keep prices low. For Broadcom, we are watching three things: (1) AI sales, both custom chips and networks, (2) the recovery of the legacy semiconductor business, and (3) VMWare integration. Broadcom shares rose on Wednesday on a media report that Apple is considering partnering with Broadcom on 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 a proprietary component next year. This is a bit at odds with last Friday's Bloomberg story, which reported Apple's plan to replace Qualcomm's modem system but continue the relationship. Could this be a situation where Broadcom loses its wireless partnership but gets a big AI win that could be more lucrative over time? Time will tell. (A complete list of Jim Cramer's Charitable Trust stocks 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. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation's portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION SET FORTH ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. THERE ARE NO fiduciary duty or duty IN RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Every weekday, CNBC Investing Club with Jim Cramer publishes Homestretch – an actionable afternoon update just in time for the final hour of trading on Wall Street.
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