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. Markets lose steam: The S & P 500 is flat Thursday, giving up earlier gains. Although Nvidia ‘s revenue guidance may not have been enough to satisfy its own investors, the number was good enough to spark a rally in other tech stocks and data center-related names. Club holdings Eaton and Dover are two examples of industrial ways to play the data center build-out. Eaton, which rallied more than 4% Thursday, specializes in electrical and power management equipment that can be found throughout data centers. Dover, which is up more than 1%, provides liquid cooling technologies that are a critical part of the so-called AI factories Nvidia is helping customer build. As Nvidia CEO Jensen Huang pointed out Wednesday night on the earnings call, data center racks will need to have liquid cooling (not air cooling) to support its next-generation Blackwell platform. We would have been buyers of Dover earlier Thursday if we were not restricted. Disney : Ever since Bob Iger returned as CEO of Disney in November 2022, there’s been a series of items the company has needed to check off the list to restore investor credibility. Many of those items have already been crossed off. The company has bought back a dividend, resumed share repurchases, cut costs by billions of dollars and put its direct-to-consumer streaming unit on track for profitability. There also have been early signs of a turnaround in the film studio business. But a big item still missing is who will succeed Iger as CEO. A story from The Wall Street Journal on Thursday may help answer that question. The report suggested Josh D’Amaro is in the running to become the next CEO of Disney. D’Amaro is currently the chairman of Disney Experiences, a business the company is investing $60 billion over the next 10 years . Our takeaway from the story is that it’s a sign the succession process is picking up steam, which sounds right to us after James Gorman was named chair of the Succession Planning Committee last week. This is a good thing because once a successor is named, the company and investors will finally have some certainty about a situation that has long been in flux. Shares of Disney were up about 1% Thursday, outperforming the broader market. Up next: We have another big night of earnings on deck. Dell Technologies , Lululemon , Ulta Beauty , Marvell Technology , MongoDB, and Autodesk are all scheduled to report. Gap also was set to report, but the retailer released its better-than-expected results earlier in the day for an unknown reason. On the data side, we’ll get the Federal Reserve’s favorite inflation gauge for July, the PCE Price Index, on Friday. The current expectation is that the index and core index, which excludes volatile food and energy prices, rose 2.6% and 2.7% year over year, respectively. Both measures would be a tick higher from the June reading. (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.
Read the full article here