Another subdued day for stocks. Here's our latest thinking on 4 portfolio names including a 'coiled spring'

2024-05-14 19:32:00+00:00 - Scroll down for original article

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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. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.) Market talk: The S & P 500 continues to trade in a tight range Tuesday, with no significant budge in either direction. It's similar to the action we've seen over the past several trading sessions. In four of the past five sessions, the S & P 500 has not closed more than 0.16% in a positive or negative direction; Friday's 0.51% gain is the lone exception. Tuesday's subdued action follows a noisy wholesale inflation report before the bell. The producer price index for April increased a more-than-expected 0.5% month over month. However, downward revisions to the March report make it more difficult to interpret the April numbers than usual. All eyes will be on the consumer price index due out at 8:30 a.m. ET Wednesday. At an event in Amsterdam on Tuesday , Federal Reserve Chair Jerome Powell reiterated that the U.S. central bank is likely to keep interest rates steady for a while due to sticky inflation. Quick takeaways from an Analyst Conference: A couple of our companies spoke at Bank of America's health-care conference Tuesday, including GE Healthcare . Most of the questions centered on the medical equipment maker's ability to meet its full-year outlook — the same debate that caused the stock to fall more than 14% to $76 per share after earnings . We called that sell-off an overreaction, and the stock has climbed more than 5% since then, including Tuesday's slight decline. CFO James Saccaro reiterated Tuesday that the fulfillment delay in its patient-care solutions business — among the reasons for the first-quarter miss — was a "one-off isolated incident" that will be resolved in the second half of the year and won't lead to any lost sales. The other issue is China, where GE Healthcare experienced a more challenged environment due to a delay in ordering patterns from customers lacking clarity around a new government stimulus package. While not an ideal situation, we're taking the long-term view of this temporary issue because once more information is known, GE Healthcare should see a big influx of new orders. But the timing is still unclear, and based on management's comments Tuesday it doesn't sound like the situation has changed in the past two weeks. Executives continue to expect more clarity from the Chinese government at some point in the second quarter. Jim's thoughts: Stanley Black & Decker shares rose about 1.5% Tuesday, among the best-performing Club holdings in the session. We're looking forward to Jim Cramer's interview with the DeWalt parent's CEO, Don Allan, later Tuesday on "Mad Money." "I feel strongly that [Stanley Black & Decker] is a coiled spring with a good safe dividend and some killer products that will take share," Jim said ahead of the interview. "I know [Home Depot] didn't kill it but that's only 15% of revenue. Lots of other ways to win," he added. "Europe and [Latin America] very strong. Aircraft fasteners terrific." Shares of electrical equipment supplier Eaton Corp. are lower for third straight day after closing Thursday's session at an all-time high of $333.26 each. The Club stock is trading around $328 per share Tuesday, so it's hardly been a steep pullback thus far. Still, Jim said, investors should be looking at Eaton's declines opportunistically. "Buy Eaton on any weakness," he said. "It is a data center play," which is a key theme on Wall Street as investors look to capitalize on infrastructure investments to support AI computing needs. Eaton has been the second-best portfolio holding this year, up roughly 36%. Nvidia , the leading AI chipmaker, occupies the top spot, advancing more than 83%. Analysts at Stifel painted Costco Wholesale in a positive light based on the results of its U.S. consumer spending survey. The survey was encouraging for large retailers in general, including Walmart and Target. But the results were "most favorable" for Costco, according to the analysts, who have a buy rating on the stock. Costco is "the only company that can beat Amazon at Amazon's game," Jim said, referring to Costco's focus on offering value to customers on just a few thousand items. Up Next: The lone earnings report on our radar after the closing bell is bullpen name Nextracker, the maker of solar tracker systems. In the morning we'll try to get some clarity on the ongoing inflation debate when we see the CPI report. Expectations are for a 0.4% increase month over month and 3.4% year over year. We'll also be looking at earnings from the enterprise software company Monday.com. (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. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.)