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. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.) Markets drop: There was another attempt to lift the market at the beginning of Friday’s session, but it failed once again, putting the S & P 500 on track for a six-day losing streak. We keep pointing out that the rallies are happening too early in the session, leading the initial buyers to get caught by scalpers looking to make a quick trade. Volatile markets like this are when patience matters. We’re still waiting for that truly ugly open before stepping up our buys. Until we see that crescendo, the oversold market means stay opportunistic but be gradual. That’s been our approach this week, with our most-recent trade being a small buy of Estee Lauder on Thursday morning. Bad week for tech : Tech is getting hit hard again Friday, capping off a week in which the Nasdaq 100 fell by more than 5%. The biggest drag in the sector, by far, is Super Micro Computer . Shares of the artificial intelligence server maker were down as much as 20% Friday for a reason you don’t see too often: The company hasn’t preannounced earnings yet. Super Micro’s stock has been one of the biggest winners in the market over the past couple of years due to the rapid construction of data centers around the world. Heavy investments in AI accelerated this trend. As demand for its rack-scale solutions and liquid-cooled systems surged, Super Micro’s quarters kept getting better and better, resulting in earnings preannouncements in seven of the past eight quarters, including in January. Last month, the stock was added to the S & P 500. Entering this week, Super Micro was up more than 200% year to date. With earnings getting close on April 30, the fact Super Micro has yet to give a positive preannouncement is being viewed as negative, according to analysts at Wells Fargo. That doesn’t mean Super Micro’s quarter won’t be good — we can’t possibly know. But the recent fall in SMCI on no actual announcement is a reminder of a lesson that we shared earlier this year when markets were steadily making new highs: Always be fearful of parabolic moves and make sure you are taking gains on the way up because those kinds of moves are unstainable. Pockets of green: It’s not all negative Friday. There’s some pretty good strength in energy stocks, financials, consumer staples, health care, and real estate — a sign of money rotating out of hot momentum names and into other areas in the market. Shares of Club holding Coterra Energy rose nearly 2% on Friday, among the best performers in the portfolio. Do the work: Wells Fargo made a new 52-week high Friday, extending its weekly gains to more than 7%. Wells Fargo’s strength follows a negative reaction to its first-quarter earnings report last week , even though the results were quite good. That’s a theme we’ve noticed so far this earnings season. There’s so much information coming out that sometimes the market gets sloppy and focuses on the wrong things, leading to misread results and ridiculous stock reactions. Fellow Club holdings Constellation Brands and Abbott Laboratories belong in this group, too. The lesson? Don’t let the tape be the judge of a quarter. Instead, read the earnings materials and conference calls yourself because doing the work will help you spot opportunities. “It’s important to have confidence in investing. But confidence comes from doing the homework,” Jim Cramer said Friday. Next week: Rest up over the weekend for an earnings barrage. Roughly 30% of the S & P 500 and 11 Dow components report earnings next week. Among the headliners are a trio of portfolio stocks — Alphabet , Microsoft and Meta Platforms — and beaten-up Tesla . But there are plenty of other big reports to sink our teeth into. Club holdings Danaher , Ford Motor , and Honeywell International are scheduled to report along with Verizon , Cadence Design , Nucor , UPS , GE Aerospace , PepsiCo, RTX , Halliburton , Thermo Fisher Scientific , ServiceNow and Chipotle , among others. Check your email inboxes and texts Saturday morning for a breakdown on what we’re expecting from the six Club stocks set to report this coming 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. (We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible.)
