Every weekday, the CNBC Investing Club with Jim Cramer publishes Homestretch, a helpful afternoon update just in time for the final hour of trading on Wall Street. (We will no longer be recording audio, so we can get this new written article to members as soon as possible.) April Showers: The Dow Jones Industrial Average, S&P 500 and Nasdaq were ready to end a terrible April on a negative note and snap their five-month winning streaks. A stock market crash in April is quite rare, as it is usually one of the strongest months of the year. Bond yields rose again on Tuesday, following the release before another hotter-than-expected inflation report came out. The first-quarter labor cost index, which tracks workers' wages and benefits, rose 1.2%, adding to market concerns that the Federal Reserve's 11 interest rate hikes since March of 2022 have not been enough to put an end to inflation. Rate Watch: The Federal Reserve, which began its latest two-day policy meeting on Tuesday, will release its rate decision on Wednesday afternoon. Federal Reserve chief Jerome Powell will give his post-meeting press conference at 2:30 p.m. ET. No policy changes are expected. The recent run of higher inflation numbers has certainly quelled, if not nullified, the rate cut euphoria earlier this year. Jim Cramer has repeatedly said that the Federal Reserve does not need to make cuts anytime soon. Buy the dip: GE Healthcare shares were suffering a 13% post-earnings drop to just over $77 each Tuesday. We admit that we should have made some profits on the Club name when the stock was around $90 last month. Jim said during the morning meeting that it was a mistake that he feels very bad about. But he also said it's time to fight. This means the Club is upgrading the medical equipment company's stock to our equivalent buy rating of 1. We would be buyers on Tuesday if we weren't restricted. Despite the misses in first-quarter results, GE Healthcare management maintained its full-year guidance. King of Beers: Club name Constellation Brands fell more than 2.5% on Tuesday on Molson Coors' comments about a weak April for the beer industry. TAP stock was much worse, sinking more than 8% on the session. However, recent scanner data has shown no discernible slowdown in Constellation's beer portfolio, which includes Modelo and Corona. Club Earnings: In addition to GEHC's earnings, Eli Lilly and Eaton reported earnings Tuesday morning. Lilly shares rose 5.5% after the world's most valuable drugmaker provided the kind of solid guidance that smoothes out tough spots. After hitting another all-time high earlier in the session, Eaton shares fell more than 2% in afternoon trading. The energy management and electrical components company posted a quarterly increase and guidance increase. Jim said Tuesday morning that investors who don't own stocks should buy some on the dip. Next: The club names Amazon and Starbucks reporting earnings after Tuesday's closing bell. The growth of the Amazon Web Services (AWS) cloud unit will be the main focus of investors. This is especially true after strong numbers from Microsoft's Azure and Alphabet's Google Cloud. We don't expect a good quarter from Starbucks, but we think a stock price below $90 per share already reflects that. Starbucks has experienced slow sales in the United States and China. Will the Middle East boycotts that have hurt Starbucks in the recent past continue to be a drag? They were for McDonald's, which reported a weak quarter before the bell rang. However, McDonald's shares were unchanged on Tuesday, a sign that the deficit was already well telegraphed. — CNBC's Jeff Marks contributed to this report. (See here for a complete list of Jim Cramer's Charitable Trust holdings.) 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 fund'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 INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS OR IS CREATED BY VIRTUE OF THE RECEIPT OF ANY INFORMATION PROVIDED IN RELATION TO THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR BENEFITS ARE GUARANTEED.
Every weekday, the CNBC Investing Club with Jim Cramer publishes Homestretch, a helpful afternoon update just in time for the final hour of trading on Wall Street. (We will no longer be recording audio, so we can get this new written feature to members as quickly as possible.)
