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 rally: Stocks were strong across the board Tuesday with all 11 market sectors in the green. The S & P 500 was up more than 1%. Election Day voting for president is well underway. Control of Congress is also at stake, with all 435 House seats and a third of the 100-member Senate on the ballot. The market rally may be indicative of investors seeing the light at the end of getting rid of the election overhang. I may also be taking its cues from ongoing economic strength and positive corporate earnings. You can see the session’s momentum picked up at 10 a.m. ET after strong October data on the services sector of the economy. The monthly reading from purchasing and supply executives was the highest since July 2022 and showed expansion for the 50 th time in 53 months. The “soft landing” or even “no landing” economic narrative is back in full force. Rates steady : Even with this positive economic data, all signals continue to point to the Federal Reserve lowering interest rates by 25 basis points Thursday at the November meeting of the Federal Open Markets Committee. While the 10-year Treasury yield has been rising lately on concerns that Fed rate cuts will reignite inflation, it was relatively unchanged Tuesday. Bond yields did initially spike in reaction to that services number. But they pulled back after the market successfully made it past the second of its three major Treasury auctions this week. Monday there was a $58 billion auction of 3-year notes. Tuesday there was a $42 billion auction of 10-year notes. Coming up Wednesday, $25 billion worth of 30-year bonds will be on the block. Sector moves: Tuesday’s best-performing three sectors were consumer discretionary, industrials, and information technology. While higher on the session, energy, materials, and consumer staples were the bottom three. Materials was weak due to a more than 20% selloff in shares of Celanese after the company gave a poor outlook. The chemical maker’s guidance baked in weakness in automotive markets. The leader in the sector, Club name DuPont , was rallying more than 6% after a strong earnings report and raised guide as well as a narrowed timeline of its breakup into three companies. You might remember that DuPont divested its Mobility & Materials segment, which was mostly traditional auto-related, to Celanese in November 2022 for $11 billion in cash to become more focused on electronics, water quality, and industrial technologies. After failing to acquire Rogers Corporation due to regulatory hurdles, DuPont took the sale proceeds and repurchased billions of dollars worth of stock at much lower levels. Based on the divergence of the two companies Tuesday, it’s clear DuPont made a good trade. Up next: After the closing bell, we’ll see earnings from Devon Energy and International Flavors & Fragrances. Super Micro Computer is scheduled to report, too. Before Wednesday’s opening bell, we’ll get the latest quarterly results from Novo Nordisk, CVS Health, Howmet Aerospace, and Celsius Holdings. (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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