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. Markets pullback : Stocks were selling off Wednesday after a handful of earnings-related disappointments in retail and weakness in big tech. Some of the weakness in tech could be a wait-and-see approach ahead of Nvidia ‘s fiscal 2025 second-quarter earnings after Wednesday’s closing bell. But it was Super Micro Computer , or SMCI for short, that was leading the S & P 500 and Nasdaq lower, falling more than 20% after the artificial intelligence server manufacturer said its 10-K filing for fiscal year 2024 would be delayed. SMCI said the delay is needed “to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024.” Jim Cramer said Wednesday, “People believe that if something is wrong with SMCI, then something is wrong with Nvidia. But the allegations against SMCI are that its accounting is bad, it’s not an industry demand issue.” Maybe this is the stock market pullback needed to finally get the S & P Short Range Oscillator out of overbought territory, where it’s been since the close on Aug. 19. Our discipline to the Oscillator is why we’ve been making some trims in the overbought market and not buying anything for the past two weeks. Triple Lindy : Melius Research’s Ben Reitzes is the analyst we most often cite regarding AI stocks. We think he writes the best stuff about the group. Last Friday, Reitzes published an Nvidia earnings preview that outlined what he thought the company needed to print for the stock to work after the release. Reitzes believes the best-case scenario would be what he calls a Triple Lindy. (Triple Lindy is not a financial term – it’s a reference to the crazy dive Rodney Dangerfield’s character did in the 1986 movie “Back to School.”) What it requires for Club holding Nvidia is to beat fiscal second-quarter revenue estimates by $2 billion, guide up current quarter (fiscal Q3) revenue by $2 billion quarter over quarter, and provide enough upbeat commentary that suggests the company’s fiscal fourth quarter revenue can grow by another $2 billion quarter over quarter. The company pulled this off last quarter , sending the stock from about $95 per share to about $104 the next day. Reitzes also wonders what Nvidia’s plans are for the massive amount of cash it’s generating. Is a big buyback coming? Up next: Nvidia is the most anticipated earnings after Wednesday’s close, but several other notable companies report. Club name Salesforce , as well as Crowdstrike , Affirm , Okta , Five Below , and Pure Storage , are all scheduled to deliver their quarterly results as well. Before the bell Thursday, Club name Best Buy , as well as Dollar General , American Eagle Outfitters , Ollie’s Bargain , Campbell Soup , and Burlington , will report. Thursday also brings the government’s second read on second-quarter GDP and initial jobless claims data ahead of Friday’s release of the Fed’s favorite inflation gauge, the personal consumption expenditures (PCE) price index. (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.
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