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. More records: The S & P 500 and Nasdaq Composite both surged to all-time highs Wednesday as a second day of softer jobs data supported the idea that the Federal Reserve would be more likely to cut interest rates sometime this year. That sent the 10-year Treasury yield below 4.3% for the first time in months. If the government’s May employment report, which is out Friday, were to confirm this week’s theme of a cooling labor market, bond yields could come under further pressure. That, we know, has generally been supportive of stocks, especially tech. The tech-heavy Nasdaq was the star of the show Wednesday, surging more than 1.5% on the back of Nvidia ‘s march to a $3 trillion market value. Shortly after the Homestretch first published, the artificial intelligence chip king eclipsed that milestone . Driving the day: Technology is the top performing sector, rallying in response to the much better than expected quarter from Hewlett Packard Enterprise . The company’s upbeat comments about artificial intelligence server demand are undoing some of the damage from late last week after Dell Technologies ‘ backlog failed to meet lofty investor expectations. Both Broadcom and Nvidia traded more than 4% higher, and the latter’s gains also helped it briefly overtake fellow Club holding Apple in market value to become the second-most valuable U.S. company during the session. Nvidia, the leading maker of AI chips, is on track for a record close above $1,200 a share. Industrials are climbing higher, too. Eaton is one of the best performers in the group, recovering about half of its losses from the prior two sessions. We bought another one of our industrials, Dover, earlier Wednesday after initiating a position in the company last week. The laggards: Consumer staples and utilities were the weakest sectors in the S & P 500 on Wednesday, down about 0.4% each. Both are considered classic defensive parts of the market, so it’s not exactly a shock to see them lagging behind on a day when lower bond yields are helping to fuel a more risk-on trade. Real estate is the third-worst performing sector, hovering near the flatline. However, two of the Club’s consumer staples — Costco and Constellation Brands — bucked the trend and traded higher Wednesday, with Costco on pace for a record close around $831 a share. Proctor & Gamble was lower. We don’t own any stocks in the utilities and real estate sectors. Up next: Athletic apparel maker Lululemon headlines the group of companies reporting earnings after Wednesday’s close. Results from discount retailer Five Below and lingerie retailer Victoria’s Secret also are due out after the bell. Jobs will remain in focus over the final two trading days, with weekly jobless claims and the closely anticipated May nonfarm payroll report set to be released on Thursday and Friday, respectively. (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.
Tech stars Wednesday, Nvidia climbs toward a $3 trillion market cap
