Every weekday, Jim Cramer’s CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street. Market Update: Stocks are looking to maintain their rebound after Thursday’s severe market decline carried into Friday’s open. After a volatile few days, the S&P 500 remains on track to squeeze out some gains this week. One reason for the early turnaround, especially for AI stocks on Friday, may have been Vertiv Chairman Dave Cote’s commentary on “Squawk on the Street.” The wily Cote, who led Honeywell from 2002 to 2017, explained that he’s not too worried about hyperscalers’ debt spending on data center projects because of their ability to generate cash flow. He also has a positive outlook for at least the next five years based on orders. I don’t think the scrutiny surrounding AI stocks over valuation and funding concerns is over, but if Cote is bankable and direct, and he says his outlook is strong over the next few years, it’s worth considering. Insider Buying at Starbucks: Tracking insider buying and selling activity is a good way to gauge sentiment about a stock, but it’s not an exact science. Insider selling can be nuanced and difficult to decipher, especially if it’s part of a predetermined plan. Insiders may sell their stock for a variety of reasons. Perhaps you’re looking to buy a new home or pay for a wedding. But when insiders buy stock in a company, they do it for one reason only: to make money. That’s why we listen when executives and board members make purchasing offers. A filing late Thursday revealed that Jorgen Vig Knutstorp, a member of Starbucks’ board of directors, bought 11,700 shares on Nov. 10 at an average price of $85. This equates to an investment of nearly $1 million, which is close to the criteria we consider noteworthy. Knudstorp has been on Starbucks’ board since March 2017, so he has seen the company’s good and bad. We see this as a vote of confidence in the future of the coffee giant. Next week: A critical time in Q3 earnings season. Nvidia, a company at the center of the AI investment cycle, will release a report after the closing bell on Wednesday, as will cybersecurity stock Palo Alto Networks. We will also hear from major retailers such as Home Depot, Target, Lowe’s, TJX Companies, and Walmart. As for economic indicators, we are waiting to see what will be announced now that the government shutdown is over. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
