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. Thursday's Markets: Stocks are taking a breather after Wednesday's big rise, especially in the Nasdaq Composite and the smaller “Magnificent Seven” cohort. The yield on the benchmark 10-year Treasury note rose above 4.3% after a look at November's wholesale inflation, known as the producer price index, turned out to be slightly more positive. However, the market still overwhelmingly expects the Federal Reserve to cut interest rates by a quarter of a percentage point at its policy meeting next week, which would bring its target range to between 4.25% and 4.5%. %. However, what will happen in 2025 remains up for debate. We wouldn't be surprised to see an “aggressive cut” next week, as the Federal Reserve continues its message that it is in no rush to lower interest rates. Elsewhere, it was a historic day at the New York Stock Exchange with President-elect Donald Trump ringing the opening bell. Jim Cramer had the opportunity to interview Trump during the exchange. Here's a closer look at some of Trump's comments about the stock market and important trends like artificial intelligence and growing demand for electricity. Bristol Dividend Increase: Bristol Myers Squib late Wednesday announced a 3.3% increase in its quarterly dividend, bringing its annualized payout to $2.48. With its recent drop to around $56 per share, the stock now trades at a generous 4.4% dividend yield, and we're considering our next purchase of the drugmaker, which we like for its innovative treatment for schizophrenia. At about $56 and change, the stock is only about 4% above where it was trading before AbbVie's rival schizophrenia drug failed to meet its primary endpoint in a pair of mid-stage trials. Bristol Myers shares jumped 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 looks like an opportunity. It was a big moment for Bristol Myers because, instead of looking like he had a big lead in schizophrenia, it looks like he might have this space to himself for a while, at least when it comes to novel approaches to treating the disease. That's a big and financially lucrative difference. Next: Two portfolio companies report results after Thursday's close: Costco and Broadcom. For Costco, sales figures are already known since the company reports them every month. That's why we'll focus more on membership fee growth and trends, and how the company is investing to keep prices low. For Broadcom, the three things we're watching are: (1) AI sales, both custom chips and networking, (2) the recovery of its legacy semiconductor business, and (3) the integration of VMWare. Broadcom shares rose on Wednesday following a media report that said Apple is considering partnering with Broadcom for a custom artificial intelligence chip. But Broadcom shares gave back some of those gains on Thursday after Bloomberg reported that Apple plans to swap Broadcom's Bluetooth and Wi-Fi chips next year for an internal component. This is a bit contradictory to Bloomberg's story last Friday that reported on Apple's plan to change Qualcomm's modem system but continue their relationship. Could this be a situation where Broadcom loses its wireless partnership but scores a big AI win that could be more lucrative over time? Time will tell. (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 FIDUCIARY OBLIGATION OR 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.
