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. Market moves: The market was higher Thursday, with the S & P 500 trying to recover all of Wednesday’s losses. Energy stocks were the best-performing group in response to a spike in oil prices after the Trump administration sanctioned Russia’s two largest companies. Technology and industrials were having a bounce-back day after Wednesday’s weakness. Honeywell and Dover were at the top of the industrials leaderboard after both portfolio companies reported stronger-than-expected quarterly results and raised their full-year earnings outlooks. In other news, the White House said President Donald Trump will meet Chinese President Xi Jinping next week in South Korea in what could be an important step toward resolving trade issues between the world’s two biggest economies. Subprime woes : After climbing as high as $228 on Wednesday following a stronger-than-expected third-quarter earnings report , shares of Capital One gave back some of those gains and fought to stay in positive territory Thursday. The post-earnings reaction in the Club stock mirrors what happened in July after better-than-expected results in the second quarter. It’s disappointing to see Capital One struggle to hold its earnings gains for a second time, but we’re betting the $16 billion buyback will help drive the stock to new heights. Still, there might have been some news that caused the stock to drift lower. PrimaLend Capital Partners announced Wednesday afternoon that it filed for bankruptcy protection. The Texas-based company provides financial services to auto dealerships focused on subprime borrowers. In recent weeks, a few cracks have started to show in the auto industry following the collapse of auto parts maker First Brands Group and subprime auto lender Tricolor Holdings. PrimaLend is another domino to fall. But as we learned from Capital One on Tuesday evening, its subprime auto exposure is outperforming the industry. As CEO Richard Fairbank explained on the earnings call, the company decided a few years ago to scale back its exposure, and he credited the business’ stable performance to its own
