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. Stock markets once again traded resiliently, at least on Monday, unfazed by a jump in oil prices and rising U.S. Treasury yields. If the S&P 500 index rises, it would be the eighth time in the last nine sessions that it has risen. WTI crude oil prices rose to $105 per barrel this morning after talks between the US and Iran failed to reach an immediate agreement. Following the breakdown in talks, President Donald Trump ordered a blockade of all maritime traffic to and from Iranian ports starting at 10 a.m. Monday. Still, there is optimism that a deal will be reached before tensions flare up again. The S&P 500 extended its gains and WTI briefly fell below $100 after President Trump told reporters this morning that he had received a call from Iranian officials seeking a deal. It is unclear how Monday’s reversal will affect the S&P oscillator. This technical tool returned to overbought territory after Friday’s trading. This is exactly one month after the S&P 500 entered oversold territory on March 10th. When it first became oversold, the S&P 500 closed at 6,781.48 and is currently trading at about $6,850. The index has changed little during this period, but you can see why we become increasingly opportunistic as the oscillator moves deeper into oversold territory. The energy sector was the best performing sector for most of Monday, but that changed after President Trump released an update on Iran. Financial stocks remained near the top of the leaderboard despite the drop after Goldman Sachs’ earnings. However, the long-term strength of technology stocks pushed the market back up, with technology performing the best. Enterprise software also rallied sharply after some ugly sessions late last week over concerns that AI would disrupt the group. Companies like CrowdStrike , Salesforce , Palo Alto Networks and Microsoft have each gained at least 2%, but are still down more than 10% year-to-date. Meanwhile, only traditional defensive sectors such as utilities, consumer staples, health care and real estate were in the red. There has been no significant revenue since Monday’s closing bell. Before the opening bell on Tuesday, earnings will be announced from portfolio holdings Johnson & Johnson and Wells Fargo, as well as JPMorgan, BlackRock, Citigroup and CarMax. On the data side, let’s take a look at the Producer Price Index report for March. (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.
