Every weekday, Jim Cramer's CNBC Investing Club releases Homestretch, an actionable afternoon update, just in time for the final hour of Wall Street's close. (Audio recording has been terminated so we can get this new article to our members as soon as possible.) Nvidia vs. the rest: Markets are mixed to start this holiday-shortened week. Nvidia continued to climb, extending its post-earnings gains to about 20%, bringing its market cap to about $2.8 trillion. The Nasdaq rose 0.4%, topping 17,000 for the first time. But the chipmaker and some of the direct beneficiaries of its AI infrastructure buildout are in for a tougher day as the market as a whole deals with rising Treasury yields. “There's not enough money to buy Nvidia this high, and neither is the market as a whole,” Jim Cramer said. “Money is flowing out of the companies that you would normally buy in the hope that they're recession-proof.” Indeed, two of the worst-performing sectors as of midday Tuesday were defensive sectors: healthcare and consumer staples. Salesforce Squeezed: Salesforce has been hit on both sides of the M&A curve lately. In April, shares fell on concerns that management would break margin and expense discipline by resuming large acquisitions through the acquisition of Informatica. At the same time, shares fell on Tuesday on speculation that Alphabet was interested in acquiring HubSpot, a marketing software company that competes with Salesforce. CNBC's David Faber confirmed on Tuesday's “Squawk on the Street” that the story is true. Salesforce reports after the close on Wednesday, but the enterprise software company needs to show it has enough growth to allay concerns about the need for acquisitions. No Favorable Press for Lilly: Eli Lilly has been growing rapidly for the past few years, hitting an all-time high last Thursday. But it's a bit surprising that the stock hasn't reacted to the company's latest announcement about expanding its GLP-1 production capacity. The company announced Friday that it is more than doubling its investment in its Indiana manufacturing site, investing $5.3 billion in new capacity. It will be several years before the site produces drugs, but investing in the expansion of the manufacturing site is prudent to alleviate future capacity constraints. Management's better grasp on the expansion of production is the main reason it was able to raise its full-year sales outlook by $2 billion in the first quarter. “If we have to manufacture to meet demand, we're going to have a pretty high quality problem,” Cramer said. Next news: Mediterranean fast-casual chain Cava reports after the close. Abercrombie & Fitch, Chewy, Dick's Sporting Goods and Advance Auto Parts report Wednesday morning. (See the full list of Jim Cramer Charitable Trust stocks here.) Subscribers to Jim Cramer's CNBC Investment Club can receive trade alerts before Jim makes a trade. Jim buys and sells shares in the Charitable Trust's portfolio 45 minutes after he sends out a trade alert. If Jim talks about a stock on CNBC television, he executes the trade 72 hours after he issues the trade alert. The above Investment Club information is subject to our Terms of Use and Privacy Policy and Disclaimer. Receipt of any information provided in connection with the Investment Club does not create any fiduciary duty or liability. No specific results or benefits are guaranteed.
Nvidia co-founder and CEO Jensen Huang at the Nvidia GPU Technology Conference in San Jose, California, March 19, 2024.
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Every weekday, CNBC Investor Club with Jim Cramer releases Homestretch, an actionable afternoon update, just in time for the final hour of Wall Street's close. (We've stopped recording the audio so we can get this new article to our members as quickly as possible.)